LAW OFFICES OF THOMAS W. DREXLER
Although there has been talk about giving the bankruptcy judges the right to change the terms of a mortgage loan, that has not yet occurred. In the event legislation is passed, it will likely not apply to all loans nor will it apply to all situations. Click on the link below to review a recent article from the Wall street Journal.
Plan to Let Judges Alter Loans Stalls - WSJ.com
For detailed information on regarding the government response to the financial crisis (the “Bailout,” click on the link below to review a New York Times article.
Credit Crisis Bailout Plan - The New York Times
The hope is that the government bailout will stabilize the financial system. People won’t deposit their money in banks unless they believe they can withdraw it when they need it, and money must be available to lend to companies to keep their businesses going. When a big company fails, it will take a lot of smaller companies down with it, and a lot of people will lose their jobs. It is certainly painful to see all this government money being thrown around, but the hope is that most of us will keep working and keep supporting the economy. The link below discusses the bailout of the auto companies.
