Federal/State Agencies Obfuscate on Bankruptcy

Foreclosurebuzz has done an interesting survey of government web sites purporting to offer aid to consumers facing foreclosure.  Most agency web sites do not mention bankruptcy at all, despite the fact that Chapter 13, and in some cases Chapter 7, can provide an array of tools to restructure debt, and in the case of underwater second mortgages, eliminate debt.  The Comptroller of the Currency characterizes bankruptcy as a scam, more or less.  The FTC also implies that bankruptcy is not a legitimate option, discussing it only in the context of rescue scams. Senator Durbin is right - the banks own Washington (and apparently many state bank regulators as well.)

Comments

[heureuse]

Bankruptcy is only legitimate when banks and corporations do it, right? Wamu walked away from all their liabilities and sold their mortgages to Chase and others and now any consumer who cannot pay their mortgage because Wamu signed off on a bad appraisal and the house is worth 1/2 the mortgage amount is to be derided. Only in America....