This paper uses a randomized experiment and administrative tax and bankruptcy records to estimate the impact of loan modifications on subsequent outcomes. A large non-profit credit counselling organization and eleven unsecured creditors offered lower interest rates and longer repayment periods to a random subset of 80,000 distressed borrowers. Borrowers offered a lower interest rate were more likely to repay their debts and less likely to file for bankruptcy protection. For the most heavily indebted borrowers, lower interest rates also increased the probability of being employed. In contrast, there was little impact of a longer repayment period on debt repayment, bankruptcy, or employment.