If you want to keep your house, then you should definitely consider bankruptcy. Once a house is foreclosed, it is gone forever (unless you have a guardian angel that would buy it back for you at the foreclosure sale).
With very rare exceptions, foreclosure is permanent and almost always undoable in states like Nebraska. In Iowa, there are a few more chances to save the house because real estate is foreclosed by a judicial process and it takes a bit longer.
Foreclosure is sometimes necessary, but it is very hard on your credit and it may take a very long time to buy another house, if ever again. If possible, you should avoid foreclosure.
There are times, however, when you should just let a house go and move on with your life, such as when you simply do not have enough monthly income to make the payments and there is no net equity in the property.
That said, you shouldn’t take foreclosure lightly and every reasonable option to avoid foreclosure should be studied and considered. While opinions from friends, family, and blog posts may be useful, they can also be tragically wrong and cause even more problems.
Each person and each case is unique. The safest course of action is to meet with an experienced bankruptcy attorney who can help you evaluate your options and make an informed decision.