---
kind: "section"
citation: "7 C.F.R. § 766.303"
title: "7"
number: "766.303"
heading: "Processing loan servicing requests from borrowers in bankruptcy."
url: "https://uscodex.org/cfr/7/766.303"
---

# §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](/cfr/7/part11.md), 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](/cfr/7/subpartC.md) 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.

## Notes

### Authority

Authority: 5 U.S.C. 301, 7 U.S.C. 1989, and 1981d(c).

### Source

Source: 72 FR 63316, Nov. 8, 2007, unless otherwise noted.