Chapter 11 Loan Modification
A San Francisco bankruptcy attorney explains the bankruptcy questions:
What is a loan modification?
A loan modification is an agreement which changes the terms of an existing contract. Loan modifications are common with home mortgage agreements and generally are sought when the borrow is unable to keep up with the normal monthly mortgage payments. A loan modification allows the borrow to obtain a lower monthly payment – generally by having the lender either adjust the interest rate or extend the term of the loan. This modification will usually allow arrears to be eliminated and built back into the terms of the new loan.
How can a chapter 11 loan modification do for my plan?
In chapter 11 bankruptcy, the debtor generally wants to restructure their finances in order to keep their property from being foreclosed and repay at least some of their financial obligations. Obtaining a chapter 11 loan modification is often beneficial because it allows the debtor to make lesser payments and agree upon more favorable terms with respect to the mortgage repayment.
What if I do not receive a loan modification?
If you do not receive a chapter 11 loan modification you can still try to restructure your financial obligations in order to remain under chapter 11 protection. However, if you based success of your plan on a loan modification then a determination will need to be made as to whether it is advisable to remain in chapter 11 or whether it is better to convert to another chapter. While a chapter 11 loan modification is helpful in relieving some financial stress that is often associated with mortgage payments, it is possible to develop other repayment strategies in order to come up with a successful plan.
If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!
