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CBRA Op-Ed - Credit Slips


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posted by Adam Levitin
I have an op-ed about the Consumer Bankruptcy Reform Act running on CNBC s site. Given that both collection moratoria and benefit extensions keep getting dribbled out in one to three month bites, we will definitely see an expiration of both as the pandemic wanes, and neither is sufficient for many households to address their arrearages.
Consider this (not in the op-ed): there s now 4.78% of mortgages that are 90+ delinquent. That s the third-highest level since 1978. Part of that is that there are virtually no foreclosures happening, but a lot of it is that the delinquencies aren t being cured. Once a household runs 90+ delinquent, cure gets very difficult the arrearage is just too big. We are going to be looking at a lot of foreclosures down the road. Add to that a rental delinquency rate somewhere between 18% (Censu ....

Natl Multifamily Housing Council , Consumer Bankruptcy Reform Act , நட்டில் பல குடும்பங்கள் வீட்டுவசதி சபை , நுகர்வோர் திவால்நிலை சீர்திருத்தம் நாடகம் ,

Top 10 Changes to Consumer Bankruptcy Proposed in the Consumer Bankruptcy Reform Act of 2020 | Bradley Arant Boult Cummings LLP


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On December 9, 2020, Congressional Democrats, including Elizabeth Warren (D-Mass.) and Jerrold Nadler (D-N.Y.), proposed sweeping legislation that would overhaul consumer bankruptcy law. The proposed changes generally make it easier for consumers to access the bankruptcy system and discharge their debts. Below is a discussion of 10 critical changes proposed in the Consumer Bankruptcy Reform Act of 2020 (CBRA).
1. Chapters 7 and 13 Are Replaced with New Chapter 10
The CBRA proposes to replace the current consumer bankruptcy Chapters 7 and 13 with the all-new Chapter 10. Currently, Chapter 7 allows consumers with nominal disposable monthly income to discharge their debts after liquidating any non-exempt assets to repay their creditors. Chapter 13 provides for consumers to discharge their debts after paying their disposable income to creditors under a three- or five-year repayment plan. ....

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74 Law Professors Sign Letter in Support of the Consumer Bankruptcy Reform Act


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posted by Pamela Foohey
Last week, Senator Elizabeth Warren (D-MA) and Representative Jerrold Nadler (D-NY) introduced the Consumer Bankruptcy Reform Act of 2020 (CBRA). As
Slipster Adam Levitin detailed, the CBRA proposes a single chapter structure designed to streamline the consumer bankruptcy process. This morning, 74 bankruptcy and consumer law professors sent to Senator Warren a letter in support of the CBRA.
As the letter states, the signatories support the CBRA because it provides a thoughtful, workable, and comprehensive response to the problems that plague the current consumer bankruptcy system. Before I discuss the letter further, a disclosure: I spearheaded this letter and circulated it among bankruptcy and consumer law scholars for signature. ....

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