Can I do a modification under a SMO?
First you may want to know what a SMO is. A SMO is something that the bankruptcy courts had under the old law that prevented people from refiling for 180 days if their case was dismissed. People who generally are under a SMO are people who are on their third bankruptcy.
Did you know that if their case is confirmed, you can file a modification to cure their trustee arrears if they fall behind to the trustee? This is a great option to have, because many people did not know that you could do this. Many people think that there is no hope to help them get out of the bind that they have. When they call you up and you can tell them that they have a way out, they will be appreciative of the option to modify their plan. I know that it costs attorney fees to do, but it also saves your case.
If you are under an SMO and you are delinquent to the trustee, call your attorney to see what options they have for you. In our division the only two options you have is get current or do the modification.
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