Bankruptcy code changes contemplated

The Hill reports:

Lawmakers are scrutinizing a failed Democratic attempt last week to gut a key provision of the 2005 bankruptcy law as a barometer for a more controversial change to the bankruptcy code.

Last Wednesday, 52 House Democrats joined Republicans to defeat a measure sponsored by Rep. Danny Davis (D-Ill.) that would have made it far easier for people to wipe away student debts in bankruptcy. Had it passed, it would have largely undone a provision of the 2005 law.

That vote could indicate the appetite for another bill working its way through Congress: a measure that would allow bankruptcy judges to trim the mortgage debts of millions of sub-prime borrowers.

You'll be hearing a lot more of this kind of stuff.