Choosing to foreclose?

I hope when people read this they do not judge...as I am only asking a question to make a decision. Over the past 3 years, my husband and I have lost about $1500 in income per month due to job losses and pay cuts. This was immediately after purchasing our new home during the housing market boom. We managed to stay afloat by going through all my 401K money, and my husband taking a second job. It soon got to be overwhelming, with us having 3 children. Many times neither of us saw my children for days due to the fact that we were both working evenings. They are age 14, 13, and 7. The stress of having to take care of everything was beginning to effect my daughter, so I decided enough was enough. Some things are just more important than that big beautiful home. I made my husband quit his second job, so that someone could be here with the kids in the evening. We have since filed chapter 13 bankruptcy, as we were getting taken to court to be sued by a few of the credit card companies. My mom saw how stressed out we were, and came to us and asked us to move in with her as my father passed away 3 years ago unexpectedly. She wants to help us and in turn it would help her as she is by herself and could use help keeping the home repairs up not to mention she is terribly lonely. She doesnt want us to pay her anything, which would allow us to save a lot of money and get back on our feet financially and she also wants me to go back to school so that I will be able to get a better job in the future. (I was halfway done with school when I had my first child and had to quit.) We are very fortunate to have this opportunity. We currently have put our home up for sale and are in the process of chapter 13. I doubt we will sell our home with the housing market being what it is these days. So we made the decision that at the end of the school year we will move into moms. I will quit my job so that i may attend school full time, and we will convert to a chapter 7 bankruptcy, and let the house go into foreclosure. It was a very painful decision for us, and we have lost a lot in trying to keep up. My question to everyone is...if you had this opportunity would you take it? It is a gut wrenching decision for me and my family, so please dont think we are taking the easy way out.