Loan Modification after Bankruptcy?
kia asked:
What happens when u modify a loan after it was discharged in BK?
I will now be legally responsible for the loan?
Will it show on my credit report again?
Loan Modification FAQ
What happens when u modify a loan after it was discharged in BK?
I will now be legally responsible for the loan?
Will it show on my credit report again?
Loan Modification FAQ
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If your loan was Discharged in bankruptcy you are no longer legally responsible for the debt. So there is no reason for a “loan modification” if this is an unsecured debt.
Now, if this is a secured debt(such as a car), and you want to keep item you need to continue to pay on the loan. Unless you Reaffirm the debt your payment history will not be reported on your credit report.
The “loan modification” you can do is a refinance where you take out a new loan and they pay off your existing one. If you Reaffirm or Refinance the loan you are no longer under the BK protections, so if you fail to pay they can take up collection activities against you.