The declaration of bankruptcy is a good way to alleviate the situation. You can just simply put your hands up and declare that you are unable to pay for your mortgage. What this can do to you is that it will relieve your mortgage responsibility. It will also adjust your debt to a level in which you can already afford to pay. Through this, you will avoid foreclosure for getting in your way.
Bankruptcy can be considered a new beginning. It is as if giving a new life for your hopeless situation. Once you filed a bankruptcy, all your debts including your mortgage will be eliminated. But this doesn’t mean you are free of charge. Of course you still have to pay your responsibilities. Bankruptcy can only delay foreclosure, which means, you still need to pay for your debts, but this time, without pressure. The banks will stop pressuring you to pay, you will be given automatic stay period, an ample time for you to save money and pay your debts.
But there are also several considerations and qualifications before you can get qualified to file a bankruptcy. You must be able to show evidences that your monthly income is below the median income in your area. There should be an income limit, otherwise you won’t be able to avail the bankruptcy.
The only negative effect of bankruptcy is that it will affect your credit liability. You may find it hard to apply for a loan or to credit money in the future because this will significantly affect your credit scores in a negative way.