Should I entertain bankruptcy?

[justcurious7]

I retired from the Navy last year (21.5 years) and had to move my family due to employment in another state (starting a new career). I'm making great money now ($105,000 + $40,000) with my normal salary, retirement income and my wife's income ($39,000) has us nearing $185,000 as a married couple (My disability should take us well over $200k/yr).

At any rate, we put our home on the market (Nov 2013) and we received and offer at $407,500 in May of 2014. I owed ~$450,000 and banks took too long to approve the short sale, so the buyers in accordance with the contract were able to walk away. I have not paid on our mortgage as I am not able to swing the extra ~$3200/mo for the mortgage and provide housing for my family in our new location.

My question is: If all of my current obligations (other bills) are in check and paid on time, and the only issue I am facing at this time is possible foreclosure in January 2015, should I even entertain bankruptcy. Thank you for any input or advice.

[BKAttyMI]

You don't state what "other bills" entail, but a free consultation with a local bankruptcy attorney couldn't hurt. Because of your move, you will likely have to have an attorney that is familiar with out of state exemptions, so make sure you are discussing this with someone experienced. If you have other debt, a Chapter 13 to protect yourself from the foreclosure liability and getting your other debts under control might be a good idea.