Proposed Bankruptcy Rule Allowing Judges To Modify Home Mortgages Rejected By Senate

In Washington, D.C., Reuters reports:

• The U.S. Senate on Thursday rejected a Democratic proposal that would have rewritten bankruptcy law to help struggling mortgage borrowers, while moving ahead with debate on a housing market rescue bill that includes a $6 billion tax break for home builders. In a 58-36 vote, the Senate defeated an amendment offered by Assistant Senate Democratic Sen. Richard Durbin to empower bankruptcy judges to ease mortgage payment terms for distressed borrowers under strictly limited circumstances.

For more, see US Senate kills bankruptcy revamp in housing bill.