Bankruptcy judges would be allowed to come to the aid of homeowners facing foreclosure under a proposal pushed by Illinois Senator Dick Durbin.
Durbin put his bill in the spotlight today at a Senate Judiciary Committee hearing.
Under his plan, a bankruptcy judge could change the mortgage of a primary residence, including lowering an adjustable interest rate to a lower, fixed rate.
Already, the judges can do that with loans for cars and a host of other debts.
Durbin estimates his bill could help an estimated 600,000 families in the U.S. at risk of losing their homes because of rising adjustable mortgage rates