Court approval process for a loan modification?

[spendingbozo]

Hi all,

Thanks in advance for checking out my question. This basically pertains to filers who handled their matters themselves.

Anyhow, I am in a confirmed 13 (knocking on wood!). I have managed to get my mortgage modified, which will be about 400 less than before. The "negotiator" has advised me that the BK court will need to grant court approval.

What exactly does that mean? My attorney advised me that if they have to handle that aspect, it would cost me extra. I'm wondering what process would need to be taken on my own, if that's even possible? Is it simple? I know my plan payment might increase as a result of the change, but I also know that is only a possibility. Does the trustee get involved? Any input is greatly appreciated.

[lrprn]

Anyhow, I am in a confirmed 13 (knocking on wood!). I have managed to get my mortgage modified, which will be about 400 less than before. The "negotiator" has advised me that the BK court will need to grant court approval. What exactly does that mean?

In Ch 13, you are not allowed to take on new debt without your trustee's permission. Also since your home is included as part of your plan and is a valuable asset, the mortgage modification terms will be of interest to your trustee.

My attorney advised me that if they have to handle that aspect, it would cost me extra.

It's not unusual for a Ch 13 lawyer to charge extra for to create an amended plan. The basic Ch 13 fee covers the usual legal services required by a 13 and no more. Filing an amended plan is outside the norm.

I'm wondering what process would need to be taken on my own, if that's even possible?

Since you have legal representation, even if it costs extra it would be foolish for you to try to take on writing an amended Ch 13 plan on your own, especially with your mortgage and home involved.