Senate Rejects Proposal for More Leeway in Bankruptcies

[depakid]

Source: NY Times

The Senate on Thursday afternoon rejected a proposal to let bankruptcy judges change the terms of subprime mortgages to help financially struggling homeowners.

By 58 to 36, senators voted to shelve a measure to change the bankruptcy code so judges could ease payment terms for distressed owners. The proposal has been the most controversial in the continuing debate over legislation to address the housing crisis.

The measure was an amendment proposed for a relief package, including new tax breaks intended to help stabilize the wider housing market, that went to the Senate floor on Thursday. Numerous other amendments are expected before the Senate votes on its final version of the bill, after which differences between the Senate and House must be worked out.

The amendment that was set aside, or tabled, on Thursday was offered by Senator Richard J. Durbin of Illinois, the Democratic whip, who said he was speaking on behalf of those homeowners who “deserve a break.”

Read more: http://www.nytimes.com/2008/04/03/washington/03cnd-cong.html?_r=1&oref=slogin

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Same old coalition of Republicans and DINO's....