House Committee Advances Cram-Down Legislation

Law360, New York (January 28, 2009, 12:00 AM EST) -- The U.S. House of Representatives Judiciary Committee has advanced a measure that would give bankruptcy courts the power to modify the terms of a homeowner's mortgage or reduce the principal balance.

The Helping Families Save Their Homes in Bankruptcy Act, introduced by Judiciary Committee Chairman John Conyers, D-Mich., inched closer to a full House vote Tuesday when the committee approved it 21-15.

Similar legislation stalled last year but has been revived recently as the U.S. recession deepens. A companion Senate bill was introduced by Sen. Richard...
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