Advice on using bankruptcy to get rid of debt

[Admin - Jon McNamara]

Hi Ryan
We can't provide advice as there is so much people need to know, such as total household income, all your monthly bills, budgets, debts, etc. You need a full credit counseling session and some lawyers also offer free consultations about the bankruptcy process and details. Find information on free bankruptcy volunteer attorneys to try.

[M Kuchar]

My name is Ryan I am married and have 2 daughters. Life was great for a while but since March of this year it has been tough and I may need to file bankruptcy. I worked in the home building industry for about 4 years. We went through a big layoff in March and so lost my job. I got a new one for much less pay but had to quit because I needed knee surgery. I’ve had a couple other jobs since my knee healed. Nothing pays for what I made before.
I’m now $6600 behind in mortgage, I have around $31,000 in small loan and credit card debt, and how $20,000-$25,000 more than what my truck is worth. If I don’t come up with the $6600 to catch my mortgage up, they have agreed to modify it.
That will raise my interest from 3.25 to 7.25. My payment goes up to $280 a month and extends my loan out another 15 years. On top of all this I have another daughter that should be driving soon. I really need help or advice on whether bankruptcy is best option or not. I need to catch my payment up, so I don’t modify, and I am most likely going to have to file bankruptcy to get rid of this debt and truck payment. I want/need to keep my house though.
I am married with two biological daughters and two stepdaughters.
There Dad has always been in and out of prison because he is a drug addict. He and his family have never done anything to help raise them. Please help. Thanks