Nicholas F. Ortiz, Esq. and John O'Donnell, Esq. Boston Bankruptcy Lawyers 306 Dartmouth Street Boston, MA 02116 ~and~ 270 Broadway Revere, MA 02151 ~and~ 1 Adams Place Quincy, MA 02169 Phone: (617) 716-0282 Email: attorney@bkmass.com Experienced, Effective, and Affordable Consumer and Business Bankruptcy Lawyers in Massachusetts Main Office two blocks from MBTA Copley Stop in Boston's Back Bay.   Site Map (Internal Navigation)  Home  Free Bankruptcy Consultation  Client Testimonials  About Us  Chapter 7 Bankruptcy  Chapter 13 Bankruptcy  Chapter 7 or Chapter 13 Bankruptcy?  Business Bankruptcy in Massachusetts  Credit After Bankruptcy  Divorce and Bankruptcy  Bankruptcy Fees and Costs  Foreclosure and Bankruptcy  Loan Modifications and Bankruptcy  Car Repossession in Massachusetts  Fight Abusive Debt Collection  Non-Bankruptcy Alternatives  Massachusetts Bankruptcy Blog   Suggest a Question: Didn't answer all your questions about this topic? Suggest a question here and we'll try to put an answer on this page. Enter your email if you want to be notified if we post an answer to your question (optional):

Loan Modifications and Bankruptcy A lot of people are seeking loan modifications these days.  It often makes a lot of sense to pursue a lower mortgage payment, better interest rate, or recapitalization of arrears.  People who obtain a loan modification may just get the breathing room they need to make ends meet.  However, we have many bankruptcy clients who have done or are seeking a loan modification.  How does this happen?  There are a few points worth keeping in mind: Loan modifications and bankruptcy serve the same ends.  They both lower your debt burden so you can live your life. It pays to be realistic about two things.  One, whether you are going to get a loan modification and, two, what it will really solve if you get it.  Sometimes bankruptcy is inevitable with or without a loan modification. Bankruptcy and loan modifications are not mutually exclusive. The second point is a tough one because mortgage modification departments are over burdened with applications and can't handle them all.  So, they often don't act quickly enough to give you all the information you desperately need. The fact is that you can't control whether you get a loan modification.  Almost no one wants to file bankruptcy, so it makes sense to keep trying for a loan modification if you believe it will solve your debt problems.  But be realistic too.  We sometimes get calls from people on the ledge of foreclosure who are there because of false hope in a loan modification that never materialized or was too small for their problems.  It is possible to use Chapter 13 bankruptcy to stop foreclosure.  Moreover, being in Chapter 13 does not stop you from getting a loan modification.  Getting loan modifications while in bankruptcy is more and more common.  As I said, the two are not mutually exclusive.  Home | Testimonials | About Us | Request Free Phone Consultation or call (617) 716-0282