The debate over what to do about too-big-to-fail is heating up (see here (FRB) and here (BoE) and here (Simon Johnson for a summation and commentary). A lot of the moves in the debate are well-rehearsed: the moral hazard issues...

(THIS IS A RE-POSTING FROM AUGUST 12, 2009)Bankruptcy is a good option if you are facing foreclosure and cannot get the lender to accept reasonable terms for a modification; terms that will allow you to either catch up on back payments over time, or which will put the arrearage at the back of the loan.

Thompson v. GMAC 08-2077
Seventh Circuit Court of Appeals
Decided May 27, 2009
Once a debtor files for bankruptcy and requests his repossessed auto be returned, the auto creditor must first return the vehicle.  Afterward, the creditor can seek adequate protection and bring a motion to modify the stay.
No longer is the burden on the debtor to prove adequate protection prior to the creditor unilaterally deciding what adequate protection is.  No longer will the debtor have to file an adversarial complaint to recover the vehicle.

The Clerk of the U.S. Bankruptcy Court for the Northern District of Illinois has just issued an updated version of the form required to accompany all motions for relief from stay.  The form includes the following items:
Debtor, Creditor, Relief Sought, Chapter 13 Confirmation Date Hearing or Date Confirmed;
Chapter 7  Report of No-Assets or Date of 341 Meeting of Creditors, Type of Collateral, Balance Owed, Other Liens Against Collateral, Estimate Value of Collateral;
Default, Pre-Petition, Post-Petition, Number of Months, On Direct Payments, On Payments to Trustee;