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