Is it acceptable to provide servicing options to the attorney of a borrower who filed for bankruptcy?

Providing servicing options to the attorney of a borrower who has filed for bankruptcy is considered acceptable and even required in many circumstances. When a borrower is in bankruptcy, their attorney plays a crucial role in navigating the legal complexities of the process. It is essential for the lender or loan servicer to communicate with the attorney to ensure that the borrower’s rights are protected and to discuss available options that might best serve the borrower’s financial situation.

This communication can help in understanding the borrower's position and can facilitate potential modifications to the loan or alternative servicing arrangements, which might assist the borrower in managing their debts more effectively. Additionally, adhering to legal requirements regarding communication during bankruptcy proceedings is critical, as it helps to ensure compliance with federal and state bankruptcy laws.