A modified version of the Helping Families Save Their Homes In Bankruptcy Act of 2009 went down to defeat on Thursday, April 30, 2009. 60 votes were needed to pass the legislation and only 45 Senators voted in favor.
This vision was appended by an amendment to a financial act with a number of provisions unrelated to bankruptcy or foreclosure. Nonetheless, the best chance to see this legislation become law this year has probably just passed.
Bankruptcy judges will continue to have authority to modify almost any other kind of loan except those secured by a personal residence. That still leaves Chapter 13 bankruptcy as one way to offer some relief to a family struggling to keep their home. It may not be enough, and the Act would have made a huge difference and saved many homes. Maybe next year…