Legal Question in Bankruptcy in California

Signing a new modification agreement 'probably' renews, or reaffirms the debt. I think the bank has a very strong argument that the loan modification agreement you sign is the equivalent of a reaffirmation agreement, which means you are now personally liable for the debt again as if you did not file bankruptcy. The counter-argument, which I think is a less-persuasive one, is that the bankruptcy code requires that reaffirmation agreements be made in a specific form, and filed with the Court within a specific timeframe. Again, I think that it is more likely than not that signing that loan modification agreement renews the debt, and you are back on the hook personally for the debt. I am not aware of any cases that go either direction on this - the phenomena of loan modifications is so new that little case law exists yet clarifying these kinds of points. You may wish to consult with a local attorney and have them research the issue, as you will not find any attorneys on this forum willing to do that extensive research for free.

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