Under some circumstances, IRS debt is dischargeable.
The real change I'd like to see in bk reform is change the Federal exemptions to give an unlimited exemption for your home and then, legislation to allow everyone to choose between state or, Federal exemptions.
As Treehugger points out, we need to be careful with a blanket get out of debt card. While I sympathize with people choking on student loans-if those are allowed to be easily discharged the well for those loans would dry up in a hurry. Only the offspring of the truely wealthy would get funding for college.
I was somewhat intriged by Sen. Clinton's proposal in the primaries to allow petioners to cramdown the mortgage in a Chapter 13. After all, we do it with auto loans that the debtor has had for 910 days or more. I'd like to see some more though on that one-say, you've been in the house for over 2 years and the value has fallen maybe, a once in a lifetime opportunity to cramdown a deficiency balance. But, that won't help a lot if you still are encumbered with a nasty ARM mortgage. So, you'd also have to make the iterest rate reasonable for the homeowner to have a shot at making it work.
As I say, I'm not 100% sold on the idea but I think it's worth pursuing-after all, the lender is gonna take a bath one way or the other.
One other thing I'd like to see is, Chapter 13 filers with student loan payments would be allowed to use those payments as an allowable expense and not have to suspend them for the term of the plan.
The real change I'd like to see in bk reform is change the Federal exemptions to give an unlimited exemption for your home and then, legislation to allow everyone to choose between state or, Federal exemptions.
As Treehugger points out, we need to be careful with a blanket get out of debt card. While I sympathize with people choking on student loans-if those are allowed to be easily discharged the well for those loans would dry up in a hurry. Only the offspring of the truely wealthy would get funding for college.
I was somewhat intriged by Sen. Clinton's proposal in the primaries to allow petioners to cramdown the mortgage in a Chapter 13. After all, we do it with auto loans that the debtor has had for 910 days or more. I'd like to see some more though on that one-say, you've been in the house for over 2 years and the value has fallen maybe, a once in a lifetime opportunity to cramdown a deficiency balance. But, that won't help a lot if you still are encumbered with a nasty ARM mortgage. So, you'd also have to make the iterest rate reasonable for the homeowner to have a shot at making it work.
As I say, I'm not 100% sold on the idea but I think it's worth pursuing-after all, the lender is gonna take a bath one way or the other.
One other thing I'd like to see is, Chapter 13 filers with student loan payments would be allowed to use those payments as an allowable expense and not have to suspend them for the term of the plan.
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