14th
January
2009
Bankruptcy Law a Culprit in Mortgage Meltdown
According to three researches at the Federal Reserve Bank of New York, the 2005 bankruptcy law is another contributor to our economy in crisis. The article states that prior to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, homeowners were able to file Chapter 7 liquidation. This allowed them to continue to pay their mortgages while freeing themselves of unsecured (not asset backed) debt. You can red the rest of the article here.
This entry was posted
on Wednesday, January 14th, 2009 at 8:42 am and is filed under Mortgages, Real Estate Market, economy.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
