Consumer Bankruptcy Attorneys Stand Behind Government Plan to Allow Bankruptcy Judges to Modify Mortgages

Steve Rhode — Thu, 19 Feb 2009 13:26:20 +0000

The following statement was issued today on behalf of the 3,500-member National Association of Consumer Bankruptcy Attorneys (NACBA) by bankruptcy attorney and NACBA president Carey Ebert of Fort Worth, TX:

“At a time when an estimated 6,600 American families are losing their homes to foreclosure every day, we welcome the Obama Administration’s support for changes to existing bankruptcy laws that will allow for judicial modification of home mortgages.The Obama Administration is the latest major player in this national debate to recognize the fact that judicial modification must be part of the solution to today’s worsening home mortgage foreclosure crisis.

It is painfully clear that the continuing, and indeed worsening, foreclosure crisis is perhaps the single largest impediment to this country’s economic recovery. We call on the banking industry to impose a moratorium on foreclosures until the Obama housing plan, including and in particular bankruptcy reform, has been fully implemented.

Just as important as forbearance by the banking industry is the need for action by Congress NOW. We agree with consumer advocates and others who say that Congress and the Administration should move with the same sense of urgency on curtailing this threat as they did with the economic recovery bill just signed into law.

Ever since the mortgage foreclosure crisis erupted into the public view in 2007, a broad array of consumer, civil rights, housing, community, labor and other organizations, as well as economists, have advocated judicial mortgage modification relief as an effective approach to stemming the growing tide of foreclosures – a solution that, unlike every other solution being considered in Washington, comes at absolutely no cost to U.S. taxpayers. This is one solution we know will work. The infrastructure already is in place. It is something the bankruptcy courts do every day with other assets. And, estimates are that this solution alone could cut foreclosures by at least 20 percent.

Data released by NACBA and others make it very clear that the foreclosure crisis will not be resolved through top-down voluntary efforts on the part of the financial services industry alone, no matter how many carrots or incentives are given. Judicial mortgage modification cuts through the impediments to sustainable mortgages. Courts must be empowered to implement economically rational loan modifications where the parties are unwilling or unable to do so on their own.”

ABOUT NACBA

The National Association of Consumer Bankruptcy Attorneys (http://www.nacba.org) is the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors in bankruptcy. Formed in 1992, NACBA now has more than 3,500 members located in all 50 states and Puerto Rico.

SOURCE National Association of Consumer Bankruptcy Attorneys, Washington, D.C.

Credit cards face bad debt

Steve Rhode — Wed, 29 Oct 2008 10:05:49 +0000

From How to Get Out of Debt

Consumer groups have long complained that credit card issuers push cards onto people who don’t need them or can’t afford them. They say that rising credit card defaults – just like mortgage defaults – are largely the fault of banks who lent to risky borrowers.

Innovest estimates that about 30 percent of Bank of America’s credit card loans are to subprime borrowers – second only to the failed Washington Mutual Inc., which had almost half of its credit card loans held by subprime borrowers.

Innovest also estimates that more than half of Bank of America’s credit cards are high-limit cards – second only to American Express Co. (Innovest classifies high-limit cards as those with lines of more than $10,000.) Nishikawa says that combination could prove toxic for Bank of America, which may have “lent more than (borrowers) can be expected to pay back.”

Bank of America’s charge-offs, or loans it doesn’t expect to collect on, increased to 6.14 percent of all credit card loans, or $1.24 billion, in the third quarter. That’s up from 4.61 percent the year before.

Credit cards face bad debt SunJournal.com, ME - 1 hour ago Asked in a recent TV interview if credit card debt would be "the next shoe to drop" for the banking industry, Lewis replied: "It, in some ways, already is," …

Click Here for totally free debt help, advice and answers.

Read the rest here: Credit cards face bad debt

How to Get Out of Debt With the Get Out of Debt Guy » banking-industry

Consumer Bankruptcy Attorneys Stand Behind Government Plan to Allow Bankruptcy Judges to Modify Mortgages

Other Related Articles to Read

Credit cards face bad debt

Other Related Articles to Read