Bankruptcy Reform Bill Defeated In The Senate

May 4th, 2009 by Reed Allmand

According to an article in the Dallas Morning News, a bankruptcy bill that would allow homeowners facing foreclosure to modify their toxic mortgages in bankruptcy was defeated in the Senate on Thursday. The Senate shot down the bankruptcy bill by a 45-51 vote against the law.

The article said:
“The banks that are too big to fail are saying that 8 million Americans facing foreclosure are too little to count in this economy,” said Senate Majority Whip Dick Durbin of Illinois, who championed the measure and had spent weeks negotiating with financial lobbyists in a bid to strike a deal.

This bankruptcy bill was just what America needed to stop this foreclosure crisis. But our lawmakers have succumb to bank lobbyist pressure and sold out homeowners facing foreclosure. We can pay mortgage lenders massive sums of money to bail them out, we can hold the hands of giant automakers as they go through bankruptcy and we can even throw money at entire industries that are drowning because they made bad business decisions; but we obviously don’t have the gumption to stand by the little guy facing foreclosure. Homeowners facing foreclosure need the help of bankruptcy to get out from under the heap of debt burying them alive which now often includes their home’s toxic mortgage. Fortunately, homeowners facing foreclosure still have some options in bankruptcy. For those homeowners facing foreclosure who still have income, you may be able to save your home using Chapter 13 Bankruptcy. Speak with a Dallas-Fort Worth bankruptcy attorney about your options.

About Reed Allmand

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Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

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