Can I File Bankruptcy?

You can file bankruptcy, but you need to find out whether you can/should file for a simple chapter 7 or the more complicated chapter 13. Obviously, if you don't have a lot of equity in your home (if you own one) and you don't have other significant assets, chapter 7 would be the quickest way to get rid of the credit card debt. The first thing to do is look at your income.

1. Median Income and Means Test

In order to qualify for a chapter 7 you must either; 1.Have an income less than the median in your state, or 2.Be able to pass the means test. If your income is greater than the median for your state, then it may be difficult to get into a chapter 7 unless your income/debt ratio is such that you would pass the means test.

See this guide for more information: Filing Chapter 7 vs. Chapter 13

2. If Chapter 7 is Not an Option

If chapter 7 is not an option, then you can consider a chapter 13 plan. In this type of bankruptcy, a monthly payment is determined based off of your "net monthly income". This is a great tool, because it can get you into a plan where you pay a much smaller monthly payment for three to five years, and once that plan is done, whatever debt remains is discharged.

Chapter 13 also has a smaller impact on your credit score.

3. Other Options

There are some alternatives to bankruptcy that you may also want to consider. You can talk to a debt settlement lawyer to find out if you can negotiate down your debts for a lump sum settlement, but this is much harder and very time consuming compared to bankruptcy.

Another thing is debt consolidation. If you can get a low interest loan, you can use that to pay off the credit card debt and get your payment lowered a little.

Talk to Bankruptcy Lawyer to get some professional legal and financial advice and find out what options are best for your case and your future. Otherwise, take a look at the links below for some really good guides to bankruptcy.

Good luck.