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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Can I default on 1 big loan without filing bankrupcy

Resolved Question:

Can I default on 1 big loan without filing bankrupcy
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.

Thank you for your question.

Bankruptcy is not a requirement. You may be able to work out a payment plan outside of bankruptcy

The first thing to be aware of is that a lender is not going to modify a fully performing loan. You will typically need to be 60-90 days behind before they will discuss modification. They will only modify to mitigate their risk . As long as you are paying, they have no incentive to modify.
Customer: replied 7 years ago.
So I should not pay this loan for 90 days? Then I can work out a deal with them???
Expert:  Ellen replied 7 years ago.
You may be able to work out of settlement if you are behind in your payments
Customer: replied 7 years ago.
What if they do not want to work out a settlement do I need to file then?? I am divorced and left with to many bills from my ex husband.
Expert:  Ellen replied 7 years ago.
If the lender is unwilling to work out a settlement, you may need to file a bankruptcy at that time
Ellen and other Bankruptcy Law Specialists are ready to help you