You say 'letting the house go in foreclosure' -- does that mean you are letting them take the house?
Before you think about bankruptcy, you should see what they sell the house for and what the deficiency balance is. Chances are that they might not even try to come after you for the remaining balance.
If there is a substantial balance and they demand you to pay it, the worst they could do is sue you. At that point, you might consider a bankruptcy. However, depending on the assets you own, you may rather consider a Chapter 7. Since the house was already taken, there is nothing left for them to take from you (unless you own other property...), and a Chap 7 will wipe them out completely. Where a Chap 13, you will end up paying them back through payment plan.
A Chap 13 is more suitable to avoid foreclosure if you wanted to keep the house. Doesn't sound to me like that is your intention...
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.