The current version of H.R. 200 requires that a borrower attempt to negotiate a modification with “the holder of the claim” before they are eligible to propose a modification through Chapter 13. Chip Parker points out that who holds the claim is a big unknown.
Presently in bankruptcy court, servicers who bring motions for relief from stay often can’t tell you who owns the note. They haven’t a clue who has physical possession of the instrument, and even more often can’t tell you correctly whether the debtor has made a payment or what they did with the money.
If you interpret this provision as requiring the borrower to contact the servicer in search of loan modification, the law will be easily satisfied. The debtor can certainly testify what they’ve done, and the credibility of any servicer who disputes such assertions is likely to be suspect.
If “holder” is intended to invoke its technical meaning in the Uniform Commerical Code, then the courtrooms will be awash with questions on this score.