Loan modifications and Chap 7

[liboton21]

I'm going to LA today for the NACA loan mods, if I got approve for a lower interest rate (2%), I still qualify for C7 using the means test. Now, my question is if I file on November for C7 will this affect my filing since I just had a loan mod? I am keeping both t he house and car even I'm way underwater.

Thanks in advanced.

[lrprn]

...if I file on November for C7 will this affect my filing since I just had a loan mod? I am keeping both t he house and car even I'm way underwater.

You'll file using the new modified mortgage loan payment amount on your forms, that's all.

I wish you would at least re-think keeping the car if its current market value really is much less than you owe on the loan. I hate seeing anyone reaffirm on a car that could be wrecked or need extensive repairs in the future. If that happens, you'll owe whatever is left on the loan plus you'll still have to find and possibly finance another car. That's not even close to a fresh start.

I can make the same argument about the house as well. What will you do if you need to sell it and you're not able to pay off the loan(s) with the sale? It's no fun to sell a house, move out, and still be paying on the loans. Keeping a "way upside down" house again sets you up for not being able to afford another house for a long, long time...maybe never again.

This is your one chance to walk away owing nothing. Don't let your emotions cloud your thinking about this. It needs to be a cold-hearted business decision. You won't get another chance to walk away and get a fresh debt-free start for eight long years. At least think about it, ok?