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Bankruptcy Law/Chapter 7 after a modification


In California.  After two years , I received my "Home Affordable Modification Program"  request approved for my main residence loan on 10/2011.  When I received the good news I was working on my Chapter 7, as I was flooded with debts, including my residential loan.  A month later,  I filed Chapter 7 on 11/2011, and got my Chapter 7 discharge on 3/2012.

Now today in 2014,  because of worsening economic reasons and job losses I plan to quit making my loan modification payments and move into a smaller house where I can manage my new property payments.  Will the Chapter 7 discharge protect me from my home loan modification personal liability  to the lender?  I could not find a clause in the loan modification agreement that explains what happens to my obligation if I file a Chapter 7 Bankruptcy after the modification.

You should be all right so long as you listed the loan modification debt in your Chapter 7.  If the new loan closed before you filed the Chapter 7 and you listed it as a debt, then your personal obligation is discharged.  If it closed after you filed, then it would not be discharged.  If you listed the original creditor and not the loan modification creditor, then even if the new loan closed before the Chapter 7 filing, you may have a problem.  If the same creditor held the old loan and the modified loan, you should be all right.

If you want to be more specific about the nature of the loan, the lender(s), the specific date of closing of the documents, etc., I would be happy to discuss it further.  

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Michael T. Hertz


I am already listed as a volunteer under "Collections Law," but actually I am a bankruptcy lawyer. I am a member of bar in California and in Massachusetts and have practiced in bankruptcy since 1978 and have also taught bankruptcy law at the law school level (in Maine and Oregon). I can answers questions with respect to all bankruptcy chapters, having represented creditors, debtors, trustees, creditors committees, and persons involved in defending actions in bankruptcy court.


See above. Basically, 33 years of experience.

inactive member of State Bar of California; inactive member of bar in Massachusetts; former member of bar in Maine; former conseil juridique in France.

California Bankruptcy Law Review; Georgetown Law Journal; numerous others. See my resume.

Harvard Law School, J.D.; Pomona College, B.A.

Awards and Honors
Superlawyer in Northern California, 2005 and 2006

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