Chapter 7 or Chapter 13

A little over a year ago my fiance and I purchased a house. At that time I was making enough money to pay all of the bills (i.e. mortgage, property taxes, utilities) associated with the house. When we purchased the house I had some personal debt (approximately $90,000 - $50k credit cards and $40k student loans) that I had accumulated over the years, but was doing my best to pay it down. Now this year due to the economy my employer has forced me so far to take 3 weeks off without pay and cut my pay by 10%. As such I have had no choice but to borrow from my credit cards to pay for the monthly bills. I am wits end as I am maxed out on 6 of my credit cards and have only $15,000 available to me on 2 others. My fiance works but what she brings home in a month is enough to cover daycare expenses for our one year son and her car payment and groceries. According to zillow.com there is about $7500 worth of equity in the house, although I am skeptical of this. We are both on the title of the house. If I was to declare bankruptcy is there any chance of us saving the house? If so how? I would hate to lose it because of my carelessness.  

You need to go over your fact pattern with a BK attorney.

I think the chances are good that you will have to pay for an appraisal of the house.  IL exemptions are puny, but, if you have very little equity in the house, the US Trustee will have no interest in liquidating it to pay your creditors.  It then becomes whether you can afford the house given the student loan repayments and your other living expenses.  If you can't, then you won't be able to keep it regardless.

Your bigger problems may be passing the means test and that 40k of student loan debt.  Student loans generally are not dischargeable in bankruptcy.  You may have forbearance options with respect to them, but there is only so long that you can put them into forbearance.  

Get this stuff explained to you in detail.  There is only so much you can learn in forum like this one.  Most BK attorney give free or very low cost initial consultations.