Although consumer advocates tried to warn Congress at the time, only now is it becoming apparent that the 2005 Bankruptcy Reform Legislation (BAPCPA) was an attempt to blame falling corporate revenues on consumers. Mortgage and credit card companies blamed their lack of revenue on consumer bankruptcies while continuing to dole out unsafe and impossible loans to consumers and punishing them with foreclosures and rate increases if they couldn't keep up the payments.
Furthermore, lenders, not consumers, are the ones that seem to be abusing the system these days. According to U.S. Senate testimony, bankruptcy trustees are seeing "systemic problems" with mortgage servicers that:
Tack on exorbitant fees. Miscalculate how much is owed. Refuse to communicate with borrowers or the court. Force homeowners into foreclosure without authority to do so, usually because the servicers can't figure out or prove who actually owns a mortgage, which has typically been chopped up and sold to investors. If you missed the irony, I'll spell it out. Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 because lenders had alleged that consumers were abusing the bankruptcy system.
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1 comment:
The ruling came in response to a motion filed by United in which the airline asked the bankruptcy court to determine if certain special facility bonds issued on the airline's behalf constituted a true lease subject to the provisions of Section 365 of the United States Bankruptcy Code, or instead were 'disguised financings' that should be treated by the court as unsecured debt of the airline.
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Ancil
Alabama Drug Treatment
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