Final answer:
The housing counselor should first consider loss mitigation options, then evaluate whether a Chapter 13 or Chapter 7 bankruptcy would be more beneficial, and finally refer the client to a bankruptcy attorney for personalized legal advice.
Step-by-step explanation:
The housing counselor should first explore loss mitigation options available, such as loan modification, forbearance, or a repayment plan, which could allow the client to keep her home and manage her credit card debt more effectively. If those are not feasible, the counselor should then evaluate the costs and benefits of declaring personal bankruptcy. A Chapter 13 bankruptcy might allow the client to keep her home and set up a repayment plan for debts, whereas a Chapter 7 bankruptcy could lead to the liquidation of assets, including possibly the home, to pay off debts. Ultimately, the counselor may provide the client with the name of a bankruptcy attorney, who can offer personalized legal advice and help the client navigate the complex bankruptcy process, ensuring that all decisions made are in the client's best financial interest.