Effect of loan modification on Chapter 13 bankruptcy
Date: Fri, 07/26/2013 17:16
I'll complete the Chapter 13 repayment plan soon. It will help me to get rid of the second loan. Now, my lender has made a loan modification offer to me on the first mortgage. I'll have to pay 2.5 percent interest rate for 5 years. Should I accept the loan modification offer? What kind of effect will it have on bankruptcy and its cost? I'm also planning to relocate to Livermore, CA. Will I face any problem after relocating?
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.