7 CFR § 766.303 - Processing loan servicing requests from borrowers in bankruptcy.

---
identifier: "/us/cfr/t7/s766.303"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 766.303 - Processing loan servicing requests from borrowers in bankruptcy."
title_number: 7
title_name: "Agriculture"
section_number: "766.303"
section_name: "Processing loan servicing requests from borrowers in bankruptcy."
chapter_name: "FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE"
subchapter_number: "D"
subchapter_name: "SPECIAL PROGRAMS"
part_number: "766"
part_name: "DIRECT LOAN SERVICING—SPECIAL"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301, 7 U.S.C. 1989, and 1981d(c)."
regulatory_source: "72 FR 63316, Nov. 8, 2007, unless otherwise noted."
cfr_part: "766"
---


# 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.