Which one,if followed through with,would have a more damaging effect on your credit report?

Both actually...If u let ur home go into foreclosure, they sell it, you're responsible for the balance. If u do not pay the balance, they sue you, garnish wages, & u file bankruptcy if u do not want them garnishing ur wages. A bankruptcy stays on ur credit 10 years, a foreclosure 7 years. You can review information regarding both issues at bcsalliance.com or usbankruptcy.com You can save a home as well with a bankruptcy filing. A free first consultation at a bankruptcy attorney is would give u more insight into the matter, but.a bankruptcy filing should be ur LAST resort. Good Luck!

Take a chapter 13 that way your creditors are paid, no more phone calls, and when the realty market rises you can get permission from the court to sell the house and pay off the balance.
My friend took the bankruptcy she has 2 more years to pay off all her debts, the phone calls stopped, she still has her home. BTW its only 7 years and they go by fast, also her credit score is rising each month because she has no debt!