Industry News

Bankruptcy and foreclosure: How new law impacts homeowners

Part 1: New bankruptcy law: What's in it for real estate?

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Editor's note: The new bankruptcy law that took effect on Oct. 17, 2005, included many provisions that affect both residential and commercial real estate. But attorneys are still debating whether the real estate market overall will benefit from the changes. In this three-part series, we consulted with bankruptcy and real estate law attorneys on the specifics of how the new law impacts homeowners, renters, landlords and homeowner and condo associations. (See Part 2 and Part 3.) The new bankruptcy law that took effect on Oct. 17, 2005, included many provisions that affect both residential and commercial real estate. But whether the real estate market overall will benefit from the changes to bankruptcy law is debatable, in part because some kinks still need to be worked out, and also because fewer bankruptcies are being filed because consumers appear to be confused about whether they can still file for bankruptcy at all. "There was this huge rush of bankruptcy filings before the ne...