What should i do....short sale or bankruptcy?

I bought a house in 2007 as a single bachelor....Since then i have gotten married and had 2 children. I have never been late on any payment dealing with anything, have a 788 credit score. and have no problem paying my mortgage. The only issue i have is that my family has hugely outgrown my current house....and we desperately need to move in to a larger one. With todays market it seems impossible and was wondering if anyone could offer some advice on what to do...short sale, bankruptcy, or forclosure? It is all so confusing and what i am hearing is that all the people doing things the wrong illegal way are getting everything they need...but for me who is in no financial dilemma and has never missed any payments they dont really want to negotiate bankruptcy or short sale.