A bankruptcy will not modify your mortgage payment. The only way to reduce or modify your monthly payment is with your mortgage company. Many loan modifications are not approved. If the modification is approved, the arrears (back mortgage payments) are often attached to the end of the loan. This means your mortgage length can be extended beyond 30 years!
Filing a bankruptcy can help make the mortgage more affordable. Chapter 7 bankruptcies can discharge (eliminate) unsecured debt like credit card and medical bills. By eliminating the minimum payment, you free up income in your budget to make your mortgage payment. A bankruptcy will improve your debt-to-income ratio and allow you to save money. After a few years, you can try to refinance for a better long-term solution.
Peter Francis Geraci and Geraci Law Attorneys will figure out a way to get you out of debt. You can use the experience of Geraci Law and federal law to get a handle on your finances. If you are not approved for a loan modification and find yourself in foreclosure, a Chapter 13 with Geraci Law can save your home!