Home Improvement - Home Mortgages and the Bankruptcy Reform Act of 1994

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Culhane, Marianne B.

Issue Date

1996

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Journal Article

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INTRODUCTION|In October 1994, Congress enacted the Bankruptcy Reform Act of 1994 ("BRA"), a broad package of amendments to the Bankruptcy Code. The BRA includes important changes to the treatment of home mortgages under Chapters 11 and 13. This Article examines the 1994 amendments regarding home mortgages. More than half of individual debtors in bankruptcy are homeowners with mortgages, and many debtors have not one, but two or three mortgages. Yet most of these homeowners are determined to keep their homes. Even in bankruptcy, however, debtors normally have to pay their home mortgage lenders in full to keep the home. Six years ago, three scholars observed: In current bankruptcy policy, home ownership is not the protected status; mortgage lending is.... [I]n bankruptcy, all Home mortgage lenders, creditors give up something .... however, give up less .......

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29 Creighton L. Rev. 467 (1995-1996)

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Creighton University School of Law

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