Bankruptcy and Loan Modification

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Facts About Loan Modification and Bankruptcy Facts About Loan Modification and Bankruptcy What Each Homeowner Needs To Learn About Bankruptcy And Loan Modification. When a homeowner's mortgage and other money owed grows more than they can afford to pay...they might take into account filing for bankruptcy. If you are dealing with a similar problem understand the details of bankruptcy and loan modification prior to you making a final decision. The possible solution to your position is based tremendously on what your goals are. Should You File Chapter 7 Or Chapter 13? Declaring Chapter 7 bankruptcy will allow you to discharge your mortgage debt. Discharge means that you are free to walk away from your mortgage debt free and clear. You aren't required to be charged money to your lender. This too means the lender will now be able to begin the property foreclosure process. Your release takes away your responsibility to be charged...but it also signifies you're going to ultimately have to leave your house in the event the property foreclosure is finished. Chapter 13 conversely won't discharge your house loan debt. Nevertheless , you get to keep the home provided you continue to make your mortgage payments in a timely manner. Also while under Chapter 13 your payments will be lowered. Is It Possible To Get A Loan Modification After Bankruptcy...Is This Possible? Yes, it is possible to get a loan modification after your bankruptcy. Actually you can get a loan modification prior to and through the bankruptcy process too. However final results will vary according to any time you do so and if you file under Chapter 7 or Chapter 13. If you decide to reaffirm the loan which means you agree to pay the same mortgage debt you were already released from via a Chapter 7 bankruptcy, you'll need the endorsement of the bankruptcy court. Most bankruptcy attorneys will advise against reaffirming the loan. Take as much time as feasible to think about the options. The legal aspects of bankruptcy and loan modification can be overwhelming. Consult with a bankruptcy attorney or any loan modification company to be aware of the details and go over your best choices. For assistance, you can go to internet sites of various loan modification companies online. They will enlighten you what you are suppose to do on these kinds of situations. I trust this has been useful for information on loan modification company, and of course you can find out more on the website itself at, why not go there now and check them out.