These two options are very different. They each have their advantages and disadvantages. Sometimes it’s quite clear which one is better for you, but other times it’s more up in the air. Some of those advantages and disadvantages are often obvious. But there may be other important ones that you don’t know about. That’s why you should discuss both alternatives with your attorney with an open mind even if you think that one is the right one for you.
You can usually stop a foreclosure with either a Chapter 7 “straight bankruptcy” or a Chapter 13 “adjustment of debts.” Both are armed with the “automatic stay” – the immediate injunction against just about all creditors’ actions that goes into effect the moment your bankruptcy is filed. But what happens after that depends on whether you file a Chapter 7 or Chapter 13 case, and on what you want to accomplish.