THE VP CANDIDATES WERE ASKED ABOUT BANKRUPTCY!

Yes, its been a crazy election season. Last night, as most of you are aware, was the only Vice Presidential debate. It was highly anticipated to see Governor Palin actually be asked real questions and have to give real answers. She really didn't answer many questions, she simply used the ability to respond as a way to speak what she learned the days before about what positions she should take. It was actually quite impressive.

One of the questions asked involved our little subject---Bankruptcy! It warmed my heart to hear it. Like seeing your local high school product make it to the major leagues. It again was quite exciting!

The question was about whether the banking "bailout" (or whatever nice term we should call it) should include the ability for bankruptcy judges to modify home loans. As the law stands now, this isn't allowed---vacation homes it can happen, investment property it can happen, heck, even for cars it can happen, just not your residence. Its been a long standing stand of the banking lobby against it (go figure) and it still hasn't happened.

Well, Senator Biden said it should happen, that it should be extended to the principle of the loan, in addition to the interest. Gov. Palin didn't answer the question---she started talking about health care or energy.

The fact is, if congress gave courts this ability (through a modification of the bankruptcy code) it would save many billions of this mess. If you have any questions about this, and what you can do, don't hesitate to shoot me an email (anthony@arothmanlaw.com ).