Change Bankruptcy Law To Allow For Home Mortgage Cram Downs, Say 22 State AGs

Legal NewsLine reports:

• A coalition of 22 state attorneys general(1) asked Congress on Tuesday to loosen U.S. bankruptcy rules so judges can modify home loans to help reduce the tide of home foreclosures. In a letter to U.S. House and Senate leaders, the attorneys general called for an amendment to the U.S. Bankruptcy Code so federal judges can adjust home mortgages just as they can most other types of debts and loans.

In addition to the 22 state AGs, the District of Columbia AG also joined in the request, according to the story.

For more, see AGs urge Congress to amend Bankruptcy Code.

(1) According to the report, attorneys general from the following jurisdictions joined in making the request: Arizona, California, Connecticut, Delaware, District of Columbia, Illinois, Iowa, Kentucky, Louisiana, Massachusetts, Minnesota, Mississippi, Montana, New Mexico, North Carolina, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Vermont, Washington and West Virginia.