Loan modifications and bankruptcy.


Ryan P.

What effect to loan modifications have on bankruptcy filings?

For example, a person who is behind on a mortgage or car payment would
have to file for Chapter 13 and hope a payment plan will be approved to
save the home and car. Filing Chapter 7 with late payments on secured
loans would result in the loss property, generally, right?

If a loan modification is approved for both accounts and the lenders
now consider them current, and two months later the person filed Chapter
7, intending to reaffirm the secured loans and discharge unsecured debt,
is this permissible? Or would the secured loans be considered too "new"
and ineligible for exemption? Or worse, might the court look upon this
as willful fraud?




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