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Chapter 13: Loan Modification

Trusted Legal Help from a Los Angeles Bankruptcy Attorney

More and more, lenders are willing to negotiate with homeowners in order to minimize their losses. When your loan modification is protected by Chapter 13 bankruptcy, temporary payment terms can become sustainable debt relief.

Oaktree Law Orange County bankruptcy attorneys specialize in bankruptcies that protect homeowners. When Chapter 13 is a viable option, we may be able to lock in a lower monthly payment while working to strip other portions off your mortgage debt. Our firm has years of experience helping clients struggling with debt, and we have been listed in hg.org among other places for our dedication to the best outcomes for our clients.

Contact us or call 800-535-1627 if you want to learn more about how a loan modification will be affected by Chapter 13 bankruptcy.

Types of Loan Modification



Loan modification is voluntary on the part of the lender. During the negotiation, you may encounter two types:

  • Trial modification: A trial run for a new payment schedule. Generally lasting two or three months, the trial period commonly features terms beneficial to the homeowner.
  • Permanent modification: The payment schedule has been restructured until the debt is paid or other circumstances interrupt monthly payments.

Chapter 13 and Permanent Loan Modification



Chapter 13 bankruptcy can often be paired with your loan modification. After the trial modification terms have been agreed upon, we can help you file. If the loan modification is built into your bankruptcy filing, the lender may be forced to accept the new mortgage payments as part of your three to five year payment plan. But its essential to take the initiative; foreclosure eliminates the opportunity to negotiate for any loan modification.

Get the Legal Counsel You Need from a Los Angeles Bankruptcy Lawyer



Contact us or call 800-535-1627. Our attorneys can help you lock in a permanent loan modification that is affordable and keeps you in possession of your home.