In a crushing blow, the Cramdown legislation advocated by the Obama administration which would allow Bankruptcy Judges to modify mortgages in Bankruptcy has been voted against.  This legislation would have reduced principal balances to fair market value, lowered interest rates, amortized the loan over 40 years, and reduced payments.  Despite the measure failing, the Obama administration has been silent.  Indeed, it was also silent and stopped advocating for bankruptcy legislation in the days leading up to the vote when it appeared likely of not passing.  To read more about the failed legislation, click here. Debtors from here on out will

New Bankruptcy Laws may soon go into effect to provide much needed and over due relief for San Diegan’s upside down on their residences.  Last week, legislation cleared the House and is on its way to the Senate. Stay tuned, more on this blog to be published soon. Written by Michael G. Doan-Owner of the Carlsbad Bankruptcy Attorney office, Michael not only manages his business, but is also a highly skilled Southern California Bankruptcy Attorney with over 17 years of experience. He specializes in many fields, such as: insolvency, bankruptcy, consumer rights, debt negotiation, creditor collection abuse, estate planning, contracts, real estate,