Effective today, June 1, mortgage servicers can no longer deny a HAMP loan modification to borrowers in active chapter 7 and 13 cases on the basis of the bankruptcy filing. See Treasury Supplemental Directive 10-02. If the borrower or borrower’s counsel requests the modification, it must be considered as any other HAMP application. This provides a powerful new tool for debtors seeking to use bankruptcy to stave off foreclosure.