Bankruptcy as a Foreclosure Option:
Some homeowners make the mistake of filing bankruptcy to stop a foreclosure; it doesn’t stop it.
Bankruptcy will only delay foreclosure a little bit... while the amount owed grows to an unrecoverable amount.
Please don’t make the mistake and underestimate the deep pockets of the banks that lent you the money on your house; they will get their money and/or your home. Banks make sure their investments are secured and they are the “secured creditor”.
In the past, claiming Bankruptcy may have helped wipe out some debit; however, new Bankruptcy rules will never relieve or remove your mortgage debt.
You can NOT avoid foreclosure by filing bankruptcy.
How to: Sell House Fast – Bankruptcy