Federal Reserve Study is Right about Foreclosures, says Tacoma Bankruptcy Attorney

Feb. 27, 2011 - PRLog -- A 2011 study by New York Federal Reserve economists, who conclude the Bush-era bankruptcy law helped fuel more than 200,000 mortgage foreclosures, has drawn agreement from Tacoma bankruptcy lawyer Dave Yando.

“This misguided attempt, together with the Bush administrations’ lack of control over the banking industry, has led to the deepest recession in the modern era,” explains Mr. Yando from his Tacoma, Wash. bankruptcy law office, http://www.yandolaw.com.  

Moreover, Mr. Yando, the Tacoma bankruptcy attorney, makes a dire prediction.

“It turns out that more bankruptcies will be necessary as a result of the banking industries' gouging of the American economy,” writes Mr. Yando, who provides proven debt solutions in his legal practice.

The 2011 economic study is entitled: “Subprime Foreclosures and the 2005 Bankruptcy Reform.”

The study’s authors wrote: "By making it harder for borrowers to avoid paying credit card debt, [the 2005 bankruptcy law] made it more difficult for them to pay their mortgages, so foreclosure rates rose."

The Tacoma debt-solutions attorney concurs.

“The Bush-era changes in the bankruptcy laws were sponsored by the banking industry which attempted to restrict the liquidation and reorganization rights of honest, hard working individuals,” maintains Mr. Yando, the Tacoma bankruptcy attorney.  

“The bill, making it more difficult to file for bankruptcy, was signed into law by President Bush after easily passing in Congress – despite strong opposition from consumer groups,” recalls Mr. Yando.

“The study’s economists – Donald P. Morgan, Benjamin Iverson, and Matthew Botsch – point out the law was also harmful to credit card holders,” suggests Mr. Yando.

“They indicate the law made it too hard for homeowners to ease their credit-card debt in filing bankruptcy,” writes Mr. Yando.

In turn, Mr. Yando says, that made it impossible for homeowners to finance their mortgages.

“It was a vicious financial cycle,” writes Mr. Yando. “Homeowners could not afford their payments, nor were they able to pay off the bank loans by refinancing and nor could they sell their homes.”

Mr. Yando’s full analysis: http://www.yandolaw.com/archives/956.

His Web site has several insightful commentaries on foreclosure, including how it’s possible for homeowners to file bankruptcy but keep their homes: http://www.yandolaw.com/archives/270.

You can watch the 5 benefits of Mr. Yando's Tacoma bankruptcy law services: http://www.youtube.com/watch?v=3zw2p6KYGcg



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Tacoma bankruptcy attorney David Yando helps businesses and people with debt relief and bankruptcy services with Proven Debt Solutions. He has more than 30 years of hands on experience in planning and litigating debt relief matters - including bankruptcy, real estate, taxation and preventing foreclosure.