One of the first questions I asked my Michigan bankruptcy lawyer when I decided to file bankruptcy was; is there any way you can modify my mortgage to get a lower rate. I know my rate was fairly high sitting at 7%. Luckily it was fixed rate. I also did not have any trouble paying the mortgage. I figured if you are going to file bankruptcy you should try to position yourself in the best possible light. My goal was to have my attorney negotiate with my lender that I would reaffirm the home (continue to be legally liable) for the debt if they would lower my interest rate. I knew that once I filed bankruptcy it would be years before I could renew get a new loan or refinance (at least 2).

The plan sounded great but my state requires you to either give up the home or renew your contract with the lender. In addition, my attorney said chances are they would not go for it because I was not behind in my loan and therefore they knew I wanted to keep my home and was not struggling. The only way I was going to be able to refinance my loan was to find a lender who specialty was making bankruptcy home loans or at least a lender who dealt with refinancing someone with a bankruptcy on their record.

For the most part attorneys can not really negotiate debt unless the lender is interested in doing something for you. I had two vehicle loans with one being through Wells Fargo the same company that held the note to my Mortgage. I only had a couple thousand left to pay on my SUV and planned to reaffirm the loan so I had a vehicle that was paid off. When Wells Fargo sent the paperwork to reaffirm my auto loan they had lowed the interest rate and therefore reducing my car payment. My only guess for their generosity was I had previously (2 years prior) had been late at least 30 and 60 days because I had to have transmission work done which cause me to be late. I eventually caught up on my payments.