| The bankruptcy reforms introduced by President | | | | yet the law allows the creditor to collect payments. |
| Bush's government in October 2005 changed the | | | | Under situations where the foreclosure date is within |
| debt collection system in the country. The new | | | | the 180 days period, the only option for the owner is |
| legislation makes the creditors victors. The consumers | | | | to restructure the mortgage plan with her company |
| are quickly being in the quicksand from bad to worse | | | | and can be studied under the topic "loss mitigation". |
| situations. | | | | The lender wants you to retain your house because |
| The "automatic stay" provision, an important part of | | | | for every foreclosure, the lender loses USD $ |
| the new legislation allows consumers to apply for | | | | 28k-50k as he needs to pay the attorney, pay for |
| bankruptcy to stop all collection procedures and | | | | fire insurance, hire real estate services, repair the |
| even, contact from the creditor. The same can be | | | | house, pay taxes etc. That's the reason loss |
| filed anytime by the creditor. For chapter 7/chapter | | | | mitigation works. The success rate for negotiations |
| 13 bankruptcy applications, the debtor should have | | | | with the lender is around 90% and this proves that |
| been receiving counseling for 180 days to manage | | | | loss mitigation works well for the debtors. |
| credit from a non-profit agency for credit counseling | | | | The information is very crucial for every American as |
| approved by the government. | | | | one delayed paycheck might cost one one's house. In |
| The provision's practical effect harms the debtors as | | | | a country like America, where health problems are |
| during the 180 day counsel period, though the debtor | | | | not a surprise for many, a late paycheck is of high |
| is trying to solve payment problems with creditors, | | | | probability. |