New York Fed Economists Say Bush-Era Bankruptcy Law Fueled Over 200,000 Foreclosures

New York Fed Economists Say Bush-Era Bankruptcy Law Fueled Over 200,000 Foreclosures: "WASHINGTON -- Economists at the New York Federal Reserve have concluded that a controversial 2005 law backed by banks and credit card companies pushed more than 200,000 people into foreclosure and exacerbated the subprime mortgage crisis.
Consumer advocates fought hard against the law, which made it much more difficult for individuals to alleviate credit card debt in bankruptcy. This inability of homeowners to eliminate other debts, the New York Fed economists conclude, in turn made borrowers unable to pay off their mortgages, spurring foreclosures