Indianapolis Bankruptcy Attorney Addresses National Convention

Indianapolis, IN, June 04, 2009 --(PR.com)-- When more than 5,000 U.S. bankruptcy attorneys from all parts of the country congregated in Chicago at the end of May for the17th annual convention of the National Association of Consumer Bankruptcy Attorneys, some weighty issues came under discussion, including bankruptcy and foreclosure statistics. Indianapolis-based consumer bankruptcy specialist Mark Zuckerberg was invited to lead a study session on advanced Chapter 13 bankruptcy.

Zuckerberg, one of only fifteen board-certified consumer bankruptcy specialists in Indiana, was the right person for the task. Recognized for his work in writing the "exemptions" portion of Indiana bankruptcy law, Zuckerberg had spent the past year closely following the heated legislative debate about lifting the separation between bankruptcy and foreclosure. The bill, which ultimately failed to gain enough votes in the Senate, would have empowered bankruptcy judges to force lenders to agree to mortgage "cramdowns" as part of Chapter 13 bankruptcy proceedings.

As part of his work as an Indiana bankruptcy lawyer, Zuckerberg is often involved in discussions with his clients about mortgage decisions and foreclosures. His blog posts keep readers up to date on foreclosure statistics in Indiana, now 15th in the nation in the number of foreclosures filed. In fact, Zuckerberg points out, foreclosures and "short sales" (in which the lender agrees to accept sale proceeds to satisfy the loan even when those proceeds are less than the amount owed) made up one third of all home sales in Indiana last month.

The Obama administration has put in place some new measures of its own designed to help sell homes that are worth less than their mortgage amount, or to help transfer ownership of such a home to the lender. "As I work with clients," Zuckerberg explains, "I need to help them explore all their options. It's vital that I keep up with all developments in the mortgage market even if the bankruptcy process itself does not govern."

In recent interviews by the Wall Street Journal and Indianapolis Business Journal, Zuckerberg described the devastating "domino effect" the housing downturn has had on families' finances, forcing greater numbers of people to turn to the bankruptcy court for help. With 'cramdown' legislation in place, the bankruptcy system might have served as a much broader safety net, he explained.

Meanwhile, at the convention, Zuckerberg used his time at the podium to discuss pre-payment terms, hardship discharges, modifications, and other challenges involved in the Chapter 13 bankruptcy process.

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