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Mortgage Cramdown Debate Now Featured on ABIs Bankruptcy Town Hall Website

Contact: John Hartgen
               (703) 739-0800
               jhartgen@abiworld.org

 

MORTGAGE CRAMDOWN DEBATE NOW FEATURED ON ABI’S “BANKRUPTCY TOWN HALL” WEB SITE

March 26, 2009, Alexandria, Va. — The newly-released second issue of American Bankruptcy Institute’s Town Hall Web site (townhall.abiworld.org) examines the ongoing debate about whether the Bankruptcy Code should be changed to allow bankruptcy judges to modify, or “cram down,” the terms of a primary mortgage of a debtor filing for chapter 13. As foreclosures across the United States continue to increase amid the housing downturn, the House of Representatives has passed legislation to change the Bankruptcy Code to allow judges to modify the terms of a chapter 13 debtor’s primary mortgage. Proponents of the legislation point to it as a potential solution to stem the rising tide of foreclosures, while opponents think that such a change would lead to increased borrowing costs, reduce the number of potential homebuyers and deepen the housing downturn.

ABI’s Town Hall Web site was established to provide a forum for both practitioners and the public to read and share their views on current bankruptcy topics that are being debated on Capitol Hill and throughout the nation. The site features commentary on the issues from experts on both sides of the debate, and users visiting the site are encouraged to add their opinions as well. The site’s first issue provides both sides of the debate over whether the federal government should bail out U.S. auto manufacturers or allow the companies to file for bankruptcy. ABI’s Bankruptcy Town Hall site will be updated with new issues and commentary throughout the year as new developments arise affecting consumer or business bankruptcies.

Please click here to view townhall.abiworld.org.

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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes nearly 12,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.