bankruptcy vs. foreclosure for renters

Before considering bankruptcy, you must speak to your lenders for once and make them understand your situation. They want to get back their payments, not your house. And in order to foreclose your house, they will have to undergo a lot of legal formalities and put more time to it. They really don't want to go through this mess and waste their time. If you can assure them with a suitable plan, they will be willing to work with you.

Follow the link for some tips on avoiding a possible foreclosure.

I would definitely second what johnson4485 says above - talk to your creditors first and see what your options are. Bankruptcy is a far-reaching, long-lasting option that will damage your credit more than you know. It should never be your first choice.

Chapter 7 Bankruptcy will NOT save the house. In Chapter 7, the Trustee is bound by law to liquidate any non-exempt assets you have (such as additional real estate) in order to pay your debts before a single penny is discharged.

Chapter 13 will save the house from foreclosure, but it will also put you into a 3-5 year payment plan that will greatly reduce your take-home income. You have to take into account that if you enter into Chapter 13 Bankruptcy, the bills do not stop coming in - you simply have new ones. New doctor bills, new home repair bills, new car repair bills (or a new car if yours needs to be replaced - and you can't get a car financed during bankruptcy without the court's approval), etc. It's not an easy road, but it's also not impossible, and is sometimes the only option. But please exhaust all other possibilities first....it is in your best interest to do so.