Can I modify a home loan during a Chapter 13 bankruptcy?

There is no bankruptcy process or rule which allows you to modify your home loan through your bankruptcy case. However, you are free to negotiate with your lender for a home loan modification. If your lender agrees, you may have to get the bankruptcy court (in a Chapter 13 bankruptcy) to approve the modification.

If you have a second mortgage or a home equity loan or line of credit (HELOC) that is not secured by the equity in your home, however, you may be able to reclassify this debt as unsecured in a Chapter 13 bankruptcy. To learn more, see How to Strip a Second Mortgage or HELOC in Chapter 13.

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