From an article posted at bankrate.com: a bill seeking to permit those with certain subprime mortgages to use the bankruptcy code re-write the mortgage has made it through committee. In a chapter 13 bankruptcy as the law now stands, a debtor cannot alter the rights of the secured home lender unless the lender has a second mortgage that is wholly unsecured. This bill would allow the debtor with "bad" mortgage to "cramdown" or alter the amount owed on the loans themselves even if the loan is not wholly unsecured.
This is considered by many to be a dramatic resolution to the pending foreclosure wave. For those in the bankruptcy world though something like this makes the most sense.
If you are facing foreclosure you may have a solution in the bankruptcy court even if this change does not occur. Contact me to discuss your problem.