Legal Question in Bankruptcy in Florida

Re: Bankrupcy

The relief you are referring to may not ever come in the form you are hoping for. If you are already in foreclosure you should contact an attorney as soon as possible to discuss your options.

Re: Bankrupcy

There is some possibility that a new law proposed by the President will allow a bankruptcy judge to reduce your mortgage to 31% of your income. However, the proposed law isn't even completely written yet and hasn't made it to the House or Senate. I suspect it will be a long time before the new law takes effect (probably April at the earliest, if it passes the House and Senate), if it ever does. I'm not sure you should put your eggs in that basket, but you should probably stay on top of the news to be sure.

Most of the big newspapers today have write-ups about it.

Re: Bankrupcy

At this time, the Helping Families Save Their Homes in Bankruptcy Act is in committee in both the House and Senate. (HR 200; S 61). This bill has been reported by the committee in the House, but has not moved forward in the Senate.

This bill, if passed in its current form, will allow stripping of mortgages down to the present market value of the home through Chapter 13. It would also allow bankruptcy court judges in Chapter 13 cases to fix interest rates, eliminate predatory pre-payment penalties, as well as other changes in terms.

This is a powerful piece of legislation that is being debated as we speak. For more information on this as well as links to Florida's senators, you can check out our News page on our website at www.LaBellaLaw.com. Get involved, we can use all of the support we can get to get it passed. CitiMortgage is already trying to put roadblocks into the bill!