I am currently retired and can no longer afford to make my current house payments and credit card payments. I am married but was not when I bought.

The house you inherited has nothing to do with the house being foreclosed on, or any other assets you have.  It also does not matter how they were acquired (i.e. via inheritance, purchase, or whatever)  They are all assets you own on the date you file your bankruptcy case (except for the one foreclosed on) and may or may not be "affected" depending on their value, amount of equity in them, which bankruptcy chapter you file,  and what exemptions you have available to you under applicable laws. Exemptions are "protections" for value you have in certain assets such that they are "exempt" from collections.  Every state has different exemptions amounts available. Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period. You need to consult with a bankruptcy attorney in your area to fully analyze your options and risks. Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ Follow Me on Twitter:  @bklawr