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Texas Western Bankruptcy Notice: Chapter 13 Loan Modification Program

Monday, August 31, 2020
Dear Bankruptcy Practitioners,


Effective September 1, 2020, the court will adopt a Loan Modification Program (LMP)

The LMP was developed by the Bankruptcy Law Section of the State Bar of Texas and is adopted to provide a uniform procedure to allow Chapter 13 Debtors, Lenders, and other parties to negotiate a potential modification of an Eligible Loan.  The goal of the LMP is to provide an optional program that facilitates communication between the parties; provide for the confidential exchange of information and documents; and to encourage the parties to finalize a feasible, consensual, and beneficial loan modification. The program uses an internet portal and independent facilitators to assist communications and the transfer of documentation between the parties. 

Participation in the LMP when negotiating mortgage loan modifications is encouraged, but not required.  Debtors remain free to negotiate mortgage loan modifications on their own, outside of the LMP.  If the LMP is used, however, compliance with its terms and use of its forms is mandatory. 

Please carefully review the Standing Order Adopting Chapter 13 Loan Modification Program and the LMP procedures and mandatory forms.  The documents are posted to the Court's website located at

We also encourage everyone to register for a FREE online webinar provided by the portal provider -- Navigating the Loan Modification Program -- where you will learn:


  • The 4 easy steps to a successful submission
  • How to get help preparing your applications
  • The additional fees you can earn for each matter
  • How to use the DMM Portal and Document Preparation system


Click here for available dates/times.  

Best regards,

United States Bankruptcy Court for the Western District of Texas