Bankruptcy In Florida: New Bankruptcy Legislation Is Gaining Momentum
Yesterday, the Democrats in the House of Representatives supporting legislation that would reform the bankruptcy laws were glad that a Republican decided to sign onto the legislation. Republican Rep. Steve Chabot from Ohio comes from a state that has been hit hard by the subprime meltdown. (I still do not see anyone from Florida stepping up to the plate on this issue) The Democrats hope that this will open the doors for more Republicans to sign onto the legislation. In a nutshell, the legislation will allow people with recent exotic mortgages in bankruptcy to reformulate their mortgages on their primary residences, something that they are prohibited from doing at this time. Bankruptcy Judges would be allowed to cram down the value of the homes and extend the terms of repayment to a maximum of thirty (30) years. I wrote more about this at: www.bankruptcylawnetwork.com
The big question is: What does this mean to the residents of the State of Florida. Well, I'm not sure that I can say for certain at this time, but I do know that it is a step in the right direction.
In our practice, we see people everyday giving up their homes. It is heartbreaking to speak with people who have to surrender their homes. People expected their homes to be the place where they would retire, and they expected these homes to be a nest egg, and now those hopes, desires and dreams have all been smashed to pieces. Now, these same individuals are wondering if they can rent a home without worrying that the landlord will be filing bankruptcy, thereby requiring them to move again. But, I'm definitely glad to see that someone is finally taking the steps to do something. Let's face it, last week's news of freezing interest rates will do little if anything to help.
I would love to see any of our elected officials step up to the plate and stand up for citizens in Florida. This issue needs their attention right now. My clients are getting disgusted when they try to speak with their mortgage company or servicer. We need this legislation to help Floridians save their homes, secure their futures and take back control over their financial lives.
