Legal Question in Bankruptcy in Nevada

Re: Bankruptcy Chapter 7

You should probably try to do the loan modification first. This way you can threaten the bankruptcy and maybe use that as leverage.

You cannot modify a loan in bankruptcy. You can only get off loans that are completely unsecured through a Chapter 13 but there has to be no equity in the house for that loan.

Keeping House & Modifying Loan in Chapter 7

This is one of the rare times when I disagree with Jeff. I have found that it is easier to submit a loan modification during or after the Chapter 7. Why? If you modify the loan before filing, the lender may use the bankruptcy as an excuse to cancel the loan modification agreement. But if you are in Bankruptcy, there is the real threat that you could walk away from the home. Also, when you are in bankruptcy, it is easier to work directly with the attorney for your lender instead of dealing with the hordes of applicants submitting applications at the retail level.