Voluntary Modification of Debt Secured by

Debtor’s Residence in Chapter 7 and Chapter 13 Cases. (a) Chapter 7. A mortgage creditor may negotiate a modification of its secured claim with the debtor and the debtor’s attorney at any time during the pendency of a chapter 7 case. A modification is voluntary on the part of the secured creditor and the debtor and is subject to procedures set forth in LBF 751.7.

The court will not consider a mortgage creditor’s contact with the debtor or the debtor’s attorney and any negotiation or implementation of a modification, by themselves, to violate the automatic stay of § 362 or the discharge injunction of § 524. A modification becomes effective when the trustee abandons the encumbered real property. (b) Chapter 13. A mortgage creditor may negotiate a modification of its secured claim with the debtor and the debtor’s attorney at any time during the pendency of a chapter 13 case.

A modification is voluntary on the part of the secured creditor and the debtor. The court will not consider a mortgage creditor’s contact with the debtor and the debtor’s attorney and any negotiation to effect a modification, by themselves, to violate the automatic stay of § 362. A modification becomes effective when the trustee consents in writing or the court approves the modification. -39- 12/1/2025