Skip to main content

Congress Should Amend Bankruptcy Code to Allow for Modification of Residential Mortgages According to Latest ABI Poll

Submitted by webadmin on

Contact: John
Hartgen

            

(703) 739-0800

             


color='#0000ff'>jhartgen@abiworld.org

 


size='3'>CONGRESS SHOULD AMEND BANKRUPTCY CODE TO ALLOW FOR MODIFICATION

OF RESIDENTIAL MORTGAGES, ACCORDING TO LATEST
w:st='on'>
size='3'>ABI
size='3'>POLL


size='3'>February 22, 2008, Alexandria, Va.
size='3'>—A majority of respondents (66 percent) to

size='3'>ABI’s latest
online poll agreed that Congress should amend chapter 13 of the
Bankruptcy Code to allow for the modification of residential mortgage
terms for homeowners in distress. Fifty-eight percent of respondents
“strongly agreed” and 8 percent “somewhat
agreed” that Congress should amend chapter 13 to allow for the
modification of residential mortgages in the bankruptcy
process.

Thirty percent of
respondents, however, disagreed that Congress should amend chapter 13 of

the Bankruptcy Code to allow for the modification of residential
mortgages.  Twenty-two
percent “strongly disagreed” and 8 percent “somewhat
disagreed” that Congress should amend chapter 13 to allow the
modification of residential mortgage terms in bankruptcy. One percent of

the respondents did not know or had no opinion on the
issue.

In an attempt to stem the tide
of predicted foreclosures due to the subprime mortgage crisis, Congress
is considering legislation to amend chapter 13 of the Bankruptcy Code to

allow bankruptcy judges to modify the terms of a primary residential
mortgage for homeowners in distress. The housing stimulus package (S.
2636), introduced by Sen. Harry Reid (D-Nev.), includes the mortgage
modification language among its provisions to aid distressed homeowners.

The Senate is scheduled to act on S. 2636 next week.


face='Times New Roman' size='3'>ABI
size='3'>members and members of the public were welcome to submit their
response to the statement: “Congress should
amend chapter 13 to allow the modification of the terms of residential
mortgages in the bankruptcy context
size='3'>.”


face='Times New Roman' size='3'>ABI
size='3'>’s Quick Poll is posted on
w:st='on'>
size='3'>ABI’s home
page, www.abiworld.org.
face='Times New Roman' size='3'>ABI
size='3'>members and the public are invited to respond to a question on
a timely bankruptcy or insolvency issue. Visit
href='http://www.abiworld.net/quickpoll/'>
color='#0000ff'
size='3'>http://www.abiworld.net/quickpoll/to access the results of previous

size='3'>ABI Quick
Polls.

###


face='Times New Roman' size='3'>ABI
size='3'>is the largest multi-disciplinary, nonpartisan organization
dedicated to research and education on matters related to
insolvency. ABI was founded
in 1982 to provide Congress and the public with unbiased analysis of
bankruptcy issues. The
face='Times New Roman' size='3'>ABI
size='3'>membership includes nearly 11,700 attorneys, accountants,
bankers, judges, professors, lenders, turnaround specialists and other
bankruptcy professionals, providing a forum for the exchange of ideas
and information. For additional information on
w:st='on'>
size='3'>ABI, visit
www.abiworld.org. For additional conference information,
visit
href='http://www.abiworld.org/conferences.html'>
size='3'>http://www.abiworld.org/conferences.html
face='Times New Roman' size='3'>.