If the bank auction off your house then the proceeds of the auction will be used to pay off your loan.
If it is enough to cover the loan then no issue with bankruptcy.
If it is not enough then you have to fork out the difference or may face bankruptcy depending on the amount outstanding.
The market is good now for property so I don't see how the proceeds of the auction will not cover your loan.
If the property market collapses then you may have a problem.