Convert "True" to true JSON Python

I believe you misunderstand the roles of json.loads and json.dumps (and their cousins, json.load and json.dump).

json.dumps (or json.dump) converts a Python object to a string (or file) which is formatted according to the JSON standard.

json.loads (or json.load) converts a string (or file) in JSON format to the corresponding Python object.

Consider this program:

import json

orig_python_object = { "XYZ": True }
json_string = json.dumps(orig_python_object)
new_python_object = json.loads(json_string)

assert orig_python_object == new_python_object
assert isinstance(orig_python_object, dict)
assert isinstance(new_python_object, dict)
assert isinstance(json_string, str)

for key, value in new_python_object.iteritems():
    pass

Of course one cannot .iteritems() the result of .dumps(). The result of .dumps() is a str, not a dict.

However, you can transmit that str (via file, socket, or carrier pigeon) to another program, and that other program can .loads() it to turn it back into a Python object.

Returning to your question:

how do I convert the "True" to true after loading the json file?

You do so by converting it back to JSON.

python_object = json.load(open("somefile.json"))
for k,v in python_object.iteritems():
    # some code
    pass
json_str = json.dumps(python_object)

assert 'true' in json_str
assert 'True' in str(python_object)

EDIT :

You've posted a larger part of your program in your question, which makes it more apparent where the problem lies. If I were you, I'd do one of two things:

1) I'd modify writeToFile like so:

def writeToFile(value, file_content, file, name):
    if type(value) is list:
        nrOfvalue = ' '.join([str(myValue) for myValue in value])
        nrOfvalue = "[ " + nrOfvalue + " ]"
        content = regFindName(name, nrOfvalue, file_content)
    elif isinstance(value, bool):
        content = regFindName(name, str(value).lower(), file_content)
    else:
        content = regFindName(name, value, file_content)
    writeToFile(file, content)

Or, 2) I'd modify myjson.json like so:

{"XYZ": "true"}