[Code of Federal Regulations]
[Title 7, Volume 7]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR766.303]

[Page 245]
 
                          TITLE 7--AGRICULTURE
 
       CHAPTER VII--FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 766_DIRECT LOAN SERVICING_SPECIAL--Table of Contents
 
          Subpart G_Loan Servicing For Borrowers in Bankruptcy
 
Sec. 766.303  Processing loan servicing requests from borrowers in bankruptcy.

    (a) Considering borrower requests for servicing. Any request for 
servicing is the borrower's acknowledgment that the Agency will not 
interfere with any rights or protections under the Bankruptcy Code and 
its automatic stay provisions.
    (b) Borrowers with confirmed bankruptcy plans. If a plan is 
confirmed before servicing and any appeal is completed under 7 CFR part 
11, the Agency will complete the servicing or appeals process and may 
consent to a post-confirmation modification of the plan if it is 
consistent with the Bankruptcy Code and subpart C of this part, as 
appropriate.
    (c) Chapter 7 borrowers. A borrower filing for bankruptcy under 
chapter 7 of the Bankruptcy Code may not receive primary loan servicing 
unless the borrower reaffirms the entire FLP debt. A borrower who filed 
chapter 7 does not have to reaffirm the debt in order to be considered 
for homestead protection.



Sec. Sec. 766.304-766.350  [Reserved]