« Does Anybody Know If Credit or Foreclosure Counseling Helps? | Main | Debt Management Plans and Chapter 13 Plans: Non Identical Twins Or Distant Cousins? »

Chrysler and Foreclosures: the Contrast

posted by Adam Levitin

Today it's reported that Chrysler has convinced its creditors to agree to modify its debt obligations.  Chrysler was able to do this in part because of the leverage it had by threatening to file for bankruptcy.  It's instructive to contrast the Chrysler situation to the situation of homeowners.  The voluntary home mortgage loan modifications are still not happening on the scale necessary to address the foreclosure crisis.  How different would the world look if homeowners had the leverage of bankruptcy to induce voluntary modifications? 


Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.



  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless ([email protected]) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.