Will filing for bankruptcy benefit my home loan modification case (currently under review)?

Question by Steve Pitien: Will filing for bankruptcy benefit my home loan modification case (currently under review)?
I am doing a loan modification on my house. I am current on all debt payments (credit cards, car loans, car insurance, etc.) except for the mortage payment (includes home insurance and property taxes). will it benefit my loan modification review if I do a bankruptcy (thereby eliminating my credit debt, etc)? I am aware of the consequences of a bankruptcy. Please let me know.”

Best answer:

Answer by VATreasures
There is no benefit to bankruptcy if you are up to date on your unsecured debt. There is a good happen you would spend a bunch of clocking and money going through the process and end up in Chapter 13 with only a small reduction in your payments. Things like car insurance could not possibly be reduced by bankruptcy and may actually go up if your credit is trashed.

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