Tuesday, Dec. 4
Posted 4 p.m. EST

Should bankruptcy judges modify mortgages?

Beating Bankruptcy reader Marcia of Council Bluffs, Iowa, wrote in describing her ordeal with bankruptcy and why she supports having bankruptcy judges modify mortgages:

"… If everyone in foreclosure had good credit don't you think they would have refinanced by now? It is hard to refinance if you have foreclosure on your credit report.

"What about the rest of us that took out a loan putting our faith in the lenders that we were sure they were really helping us? No one is offering us anything. We are being swept under the rug.

"The reason foreclosures are so high (is because) of CERTAIN lenders who would not give us a reasonable modification. (Those borrowers), like myself, were forced into bankruptcy to save our homes -- hoping to keep up bankruptcy payment plans.

"The lenders who are not reasonably modifying loans, after all this time, are now the ones jumping on the bandwagon to 'help their borrowers.' They should have been doing this a long time ago like other companies were.

"Allowing the bankruptcy judges to modify mortgages is the only way we will be able to keep up with the payment plan. We didn't want to file bankruptcy, but it was our only choice to save our homes. We have dreams too -- just like good credit people. We have jobs and work too …"

Do you agree with Marcia? Should bankruptcy judges modify mortgages? Tell us at bankruptcyblog@bankrate.com

Unfair lending practices examined

A Senate panel designed to conduct investigations into a broad range of issues is looking into unfair practices within the credit card industry. The lawmakers held a hearing Tuesday morning to figure out what's going on with interest rate hikes. According to Forbes.com, customers with a solid payment history are being affected.

Senators on the Permanent Subcommittee on Investigations, which is part of the Homeland Security and Governmental Affairs Senate panel, are hearing from cardholders who've had their interest rates raised as well as representatives from credit card companies.

This meeting is a follow-up to the one held in March. At that time, the senators focused on grace periods, interest rates and fees.

You can learn more about today's event by staying glued to Bankrate.

I think this hearing comes at a perfect time and may help stave off abusive lenders over the holiday. Tell us what you think at bankruptcyblog@bankrate.com.