Late Thursday the Senate defeated a proposal to amend the Bankruptcy Code to allow Bankruptcy Judges to cram down mortgages and ease mortgage payment terms and interest rates.  The vote was fifty-eight (58) to thirty-six (36) as several Democrats crossed party lines to defeat the proposed Bill. 

Weltman, Weinberg & Reis (WWR) previously reported that if such an amendment passed it would have a drastic affect on the way that mortgages were treated in Bankruptcy proceedings.  Despite the defeat of the proposed Bankruptcy Amendment, the remaining portions of the Economics Stimulus Bill will now be fast tracked. 

WWR will continue to keep you updated with bankruptcy and real estate default related breaking news as it occurs.  If you have any questions on this information, please contact Mr. Alan Hochheiser, Esq.

Mr. Hochheiser is the managing partner of Bankruptcy with the Real Estate Default Group at Weltman, Weinberg & Reis Co., L.P.A. in Brooklyn Heights, Ohio. Mr. Hochheiser can be reached at (216) 739-5649 or via e-mail at ahochheiser@weltman.com.

Client Advisory is published by Weltman, Weinberg & Reis Co., L.P.A., an organization providing comprehensive creditor representation.  The information contained in this advisory is a summary of legal information and is not intended to constitute legal advice on specific matters or create an attorney-client relationship.  Contact any of our offices or visit our website at realestatedefaultgroup.com for more real estate related information, company facts and attorney profiles. ©2008