should I walk from my house?

I owe $230k. Market Value is $150k. My wife lost her income. My income is $60k(gross). Credit card debt of $20k. Behind 3 mos on mortgage payment. Loan Mod changed my monthly from $1688 to $1944. I can't afford this payment. Is it worth trying to hopelessly grind it out? Or should I file chapter 7 and get an apartment to get a fresh start. I hate the idea of bankruptcy, but is that the right choice for my situation?