Will filing bankruptcy end our modification possibilities?

[wertrying]

All,

First and foremost thank you to the loan safe forum, moderators, and many great members!

I have been an avid follower of the forum but have not yet been an active poster. I have gotten so much great information, Thanks again!

Long story short, we first attended a NACA meeting in December of 08 and had all our information ready and submitted to Countrywide/BofA in March. We have done all that was asked of us and always waited the proper amount of time that NACA asked us to before contacting them again for more information. After no further action on our account other than "submitted to servicer for restructure" since March we attended the save the dream event in Chicago.
2 weeks later and no more info. we emailed Barbara at BofA. SHortly thereafter we were contacted by someone from BofA and then a day later by David L.! We were so excited!

David L. has told us that there is a proposal from Fannie Mae and Naca should have it and we need to conbtact them for more information. Well yesterday we tried but NACA said they see nothing from BofA!!!! How frustrating to know there is an offer but not to know what it is!

Anyhow to get to my question, during our hardship we have fallen behind on credit cards and have recieved a court order to garnish my wages. This garnishment is a little over $900 a month and will kill us so we are forced to file a bankruptcy to stop the garnishment.

The garnishment begins this Friday and I am so afraid that if we file the pending modification proposal will no longer be valid and we will be back at square one, I am dying over this!!!!!

Can someone please tell me if we file a bankruptcy before we accept the offer or even before the 3 month trial period is over will our modification be revoked?????

Sorry for such a long post, I wish everyone well and look forward to any advice at all.

Thank You.

[Moe Bedard]

Awesome to have you finally join and thanks for the accolades. We try our best to help as much as we can.

OK, you definitely need to speak with an attorney and you may want to file for bankruptcy protection ASAP. Once the BK is filed, you can later ask the courts to remove the home from the bankruptcy filing or get a letter from the judge allowing you your lender to speak and negotiate with you.

Make sure you get a good lawyer who knows both bankruptcy and mortgage law. That way they can effectively help you with both. Often, many BK lawyers are clueless on loan mods and may screw everything up.

I don't think they will revoke the mod, maybe just stop it in its tracks if they find out.

[hope67]

wertrying..if you don't mind me asking, how many months were you past due on the credit cards before receiving the court order to garnish your wages? The reason I'm asking is that I'm also falling behind on my credit cards and I'm planning to go to Consumer Credit Counseling to repay the credit cards. However, I can't do this at the moment, I'm planning to do that in a couple of months, by then I'll be 3 months past due. Thanks.

I hope your situation will be resolved thru bankruptcy, time is of essence so you need to contact a BK attorney as soon as possible. Good Luck

[pdsfoley]

David at BAC said they changed the "rules" on filing BK and stopping loan mod...He said so many people were filing. So now you can still file but need a letter from attorney stating BAC can still deal with you. So get the letter when you file.