Dodd Proposes Reforms To Bankruptcy Reforms

WASHINGTON - Senate Banking Committee Chairman Christopher Dodd (D-CT) unveiled a plan last week to introduce bankruptcy reform legislation that would specifically seek to make five changes. Dodd said his bill is meant to provide relief to families struggling financially and offer bankruptcy filers the opportunity to again achieve some financial security.

According to Dodd, his proposed bill would:

* Treat mortgages like other secured debt so that bankruptcy courts can restructure mortgage payments for borrowers.

* Allow judges to consider debtors individual circumstances when determining ability to pay to ensure families can meet children's needs.

* Ensure child support and alimony payments are settled first and are not eligible for distribution to creditors.

* Ensure medical debts can always be discharged in bankruptcy.

* Make private student loans dischargeable.

In a statement last week, CUNA called for Congress to be careful in making any changes to the bankruptcy bill that was enacted in 2005. (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com