Answers

Ok, nobody has asked me how to deal with banks and bad mortgages — and there is probably a good reason for that.  However, if you look at the title of this blog in small print below Consumer Law Updates it says — all the things no one has asked me about — yet.  Well, here are a few of those things.

If you want to seriously slow down the foreclosure problem, eliminate the statutory protections given only to residential mortgages in a Chapter 13.  If residential mortgages were freely modifiable in Chapter 13, lenders would take some principal hits but they would retain performing assets.

If you want to encourage banks to loan money to each other, make them priority creditors in the event of a bank dissolution.

If you want to reign in Corporate America’s addiction to outrageously high leverage rates, limit the deductibility of interest and other leverage related costs to a certain percentage of capital.

A whole lot cheaper than the bailout Secretary Paulson is proposing, and it just might work.

This blog will now return to the regular ramblings of an overeducated, consumer debtor’s attorney who swims in way too small a pond.

Elaine

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Categories: Bankruptcy, Consumer Credit, Uncategorized | Leave a comment

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