Hello, this is Sade. Welcome to our Freebie Friday video. Today I’ve been asked the question “Can I do a loan modification even if I file for bankruptcy?” The quick answer to that is Yes. You can do a loan modification even if you are in bankruptcy court or if you’ve already been discharged from the bankruptcy. The bankruptcy laws protect you in the sense that if you’ve been discharged from the, by the bankruptcy court, you’re essentially no longer obligated to pay your mortgage loan back as long as you turn over the collateral, which is the house. Now, if you want to, you can choose to reaffirm that loan which means that you’re promising to repay the loan and that means you stay in the house or keep the home, and then you continue to make your payments as usual. If you’ve already been discharged from the bankruptcy court you’re not obligated but you can still go back and do a loan modification which essentially makes you obligated on that loan again. So. just keep that in mind and make sure that that’s what you were intending to do and it would be just like the old contract and you’d have to keep up your end of the bargain. And if you do default, then they can go and try to do a foreclosure on that property. If you’re in bankruptcy court you can also still apply for a loan modification. Nothing stops you from doing that. The bankruptcy court essentially stops the creditors from trying to move forward to collect from you, So really, the court and the law is there to protect you and look out for the best interest of the creditors at the same time, but you’re protected in there and is so it’s optional for you if you want to go ahead and try for a loan modification. And sometimes that’s actually not a bad idea because most people file for bankruptcy to stop a foreclosure. It”s not always necessary but sometimes that’s all people know to do. So make sure to talk to your bankruptcy lawyer to have a full understanding before you do a loan modification while you’re in bankruptcy court or even after you’ve been discharged from bankruptcy court, to make sure you’re looking out for your best interests as well. And as always, I hope you’re enjoying your weekend and I will talk to you next time. Happy Friday!