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Bankruptcy Law/Post Loan modification bankruptcy


QUESTION: In California.  I received a "Home affordable Loan Modification"  approval on 10/2011 (for which I waited two years) in order to reduce monthly payments and  to discharge other  large debts.   
A month later I filed Chapter 7, and retained the property. I did not sign a reaffirmation agreement. I received the Chap 7 discharge on 3/2012.

Now I plan to quit paying the property  move to a smaller property.  Would the Chapter 7 discharge protect me from the modified loan?

ANSWER: Since you did not sign a reaffirmation agreement in your Chapter 7 bankruptcy, the discharge would protect you from any personal liability for the modified home loan or original home loan. The mortgage company could not seek a deficiency against you if you stop paying. Further you may fall under California's anti-deficiency laws that protect you against a deficiency where the loan was obtained at the time you purchased your home (purchase money security interest).

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QUESTION: I had previously refinanced the old loan in 2006 and 2007.
Also Instead of listing the new modified account number, I listed the old  account number in the Chapter 7 of 11/2011.  But both the old loan account number and the new  modified account number were with the same lender.  Would I still be Chapter 7 protected?

The fact that it was refinanced would not affect what I stated above since it was prior to the filing of the bankruptcy case. Also, the fact that you listed the old account will not affect the dischargeability as long as they were listed in the bankruptcy and given notice.  

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Norma Duenas - California Bankruptcy Attorney


Norma Duenas is a California Bankruptcy Attorney representing clients in Chapter 7 and Chapter 13 consumer bankruptcy cases. Norma Duenas is the founding member of Southern California Law Advocates a consumer bankruptcy law firm. For further information you can visit us at: Bankruptcy Attorney in Orange County


Have filed over 350 consumer bankruptcy cases in Orange County, Los Angeles and Riverside. I have worked previously for Macey and Aleman, the largest consumer bankruptcy firm in the country. Currently I am the owner of Southern California Law Advocates, a bankruptcy law firm with offices in Orange County, Los Angeles and Riverside. Law offices is focused on consumer Chapter 13 Bankruptcy and Chapter 7 Bankruptcy

California Bar Association American Bar Association

University of California, Irvine, BA in Criminology, Law and Society California State University, Los Angeles MS in Criminal Justice University of San Diego, Law School, JD Cum Laude

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