Bankruptcy News
Bankruptcy News
The US Treasury report entitled “Making Home Affordable Program Servicer Performance Report through July 2009” notes that total loan modifications through the program amounted to no more than 9% of eligible loans.
Bankruptcies have increased 75% for the 12-month period ending in March, 2009 over the 12-month period ending in March, 2008. There were 1,202,503 bankruptcies for the year ending March, 2009 compared to 901, 927 in 2008. There were increases in nearly every bankruptcy category.
As comprehensive health care is being debated by Congress, Congressman John Conyers from Michigan notes a sharp rise in personal bankruptcies from medical expenses. The Congressman notes in the latest press release that bankruptcies due to medical expenses have “skyrocketed to 62%.”
Apparently not satisfied with residential lender efforts, Rep. Barney Frank issued a curious press release alluding to previous congressional efforts to allow loan modifications in bankruptcy. The “Frank Statement on the Progress of Reducing Foreclosures” states:
If you haven't already heard, movie star Stephen Baldwin has filed for Chapter 11 personal bankruptcy. Normally, when attempting to stop a foreclosure sale of a home, an individual would file for Chapter 13 bankruptcy. In this case, however, the attorney filed for Chapter 11.
