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cfortunato, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy professor.
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I am contemplating bankruptcy. I am currently in the process

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I am contemplating bankruptcy. I am currently in the process of a loan modification on my mortgage, however, I have not been approved. I have a foreclosure sale date in 3 weeks. Do lenders allow a loan modification if I filed for bankruptcy
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.
Hi JACustomer,
After a bankruptcy filing, in general, a lender would be more likely to approve a modification. This is because once the bankruptcy is filed, a debtor usually has more disposable income because he no longer has to pay creditors.
However, the loan modification process, as well as the foreclosure, must be put on at least a temporary hold (because of the "automatic stay") while the bankruptcy is being processed.
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