Lexington, Kentucky bankruptcy attorney Gregory Napier has written an excellent blog post about the real culprit that prevents folks from saving their homes,even with Chapter 13 Bankruptcy:  house payments that are too big ! 
Here is an excerpt:
“I wrote recently about how one might save their home from foreclosure through a Chapter 13 bankruptcy. There is another side to that story. Chapter 13 will not help everyone keep their home. One of the issues I spend considerable time talking to my clients about is whether they can actually afford to keep their home no matter what they do regarding debt relief.”
This advice is so true !  If your budget won’t allow you to continue to make your monthly payment, then instead of doing a Chapter 13 to save your home, you may want to consider surrendering the home in a Chapter 7. Of course, loan modifications or refinances are also an option to consider to lower your monthly payment, but those can be difficult to obtain in today’s economic climate. Be sure and discuss your options with your attorney and follow their advice.
John Rogers, Kentucky Bankruptcy Attorney