Bankruptcy can be incredibly helpful for those in debt. But we aren't naive -- it isn't a fun process. Going through bankruptcy can take time, while also taking an emotional toll on you. If you take the necessary steps and work hard at it, though, then you can come through the bankruptcy with an improved financial standing that allows you to start moving on with your life.
Before a bankruptcy filing, an in-debt individual is already at risk of losing many of their assets. Their car may be repossessed due to an inability to pay; their wages may be garnished; creditors may harass them and call them trying to collect on their debt; and, of course, banks will attempt to foreclose on your home if you can't keep up with the mortgage.
Foreclosure is something that can be defended through bankruptcy. A Chapter 7 filing could prevent a foreclosure from even happening if you file early, thus clearing out debts -- including your mortgage. You could then reaffirm your mortgage. Another possibility is that by clearing your debts when a foreclosure notice is sent, you would have some financial flexibility to pay off your mortgage.
Chapter 13 is also a great tool for defending yourself against foreclosure. Through a reorganizing debt payment plan, you can catch up on your foreclosure payments.
Foreclosure is not the end. There are legal steps you can take to protect yourself, your family and your asset from creditors. Consult with an attorney to make sure you go about this process in the proper manner.