The United States Bankruptcy Court for the District of New Jersey has proposed a Loss Mitigation Program available to individuals who file bankruptcy. I proposed this idea to one of the Bankruptcy Court Judges back in approximately April 2011. The Bankruptcy Court was very interested very similar programs which already have been established in New York, Rhode Island (my home state), and Vermont. (The proposed Loss Mitigation Program really means that my bankruptcy clients could apply for a mortgage loan modification with the bankruptcy court overseeing the process).
The Court moved immediately and organized a meeting which included Bankruptcy Court Judges, Consumer Bankruptcy practitioners (including yours truly) and mortgage companies’ attorneys. Most of the individuals at the meeting believed the Loss Mitigation Program was a great idea. Some Consumer Attorneys are not so sure. My personal feeling is, if it saves one of my client’s homes it will be worth it!!! I am sure my clients agree.
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