CREDIT CARD bankruptcy?

As long as your accounts are not joint/co-signed, then your wife's credit won't be affected. Chapter 7 (not Chapter 11), is the version of bankruptcy that discharges credit card debt. Before you file, you might consider entering into a Debt Management Plan through a non profit like CCCS Consumer Credit Counseling Services ...They can negotiate interest rates down to the 10% level and usually your payments down to 2% of your total balance....which in your case might be around $280

Contact your local Red Cross for a referral to the local (CCCS). They can negotiate reduced interest and payments. They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to "enrolled in debt management." This does not damage your credit, but it may make it difficult to obtain new credit while you are enrolled in their program....so don't use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would might be denied while you're enrolled in the CCCS debt management program...

I advise against using CCCS if you are drastically past due or have already complete defaulted on most of your credit cards....If this is the case then you are better off negotiating settlements directly with your creditors. You may be able to settle in the 25% - 50% range if your cards are already defaulted. If you settle, get all terms in writing. They will probably want a large lump sum rather than small payments over several years. CCCS will not negotiate settlements because they are funded by the credit card industry.

CCCS counselors will often tell people to not file for bankruptcy when they really should. If your debt is overwhelming relative to your income/assets and the reduced payments negotiated by CCCS simply will not work, then you should think about filing for Chapter 7 bankruptcy. I personally think that $15K is the minimum that someone should consider filing for Chapter 7....but if this is a financial emergency then do what you need to do to support you and your family. Don't let anyone guilt-trip you. You can only file Chapter 7 once every 8 years....not every time you get into financial trouble.

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Stay away from any "debt consolidation" company that promises to cut your debt in half through debt settlement....This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You can never predict how your creditors will respond to the deliberate defaulting of your accounts...they might settle at 50%...or they might serve you a summons, take you to court...and if they win, you could be looking at wage garnishment. Many people who sign up with “debt consolidation” firms incorrectly assume that they have the power to force your creditors to accept settlements...they don’t. Your creditors have the right to refuse settlements and take you to court.

i think of it is often greater suitable to no longer do financial ruin, which will harm your credit document worse than mere can charge-offs and collections will. yet of course it relies upon on a lot of components. you may additionally evaluate credit counseling. Your lenders can take you to court docket and sue you to get a judgment. The judgment could convey approximately garnishment of wages or a lien on your domicile, or get admission to to your checking account. word that those thoughts are notably constrained -- financial ruin is commonly a ability to guard your components from lenders -- usually no longer mandatory for unsecured debt. word that your subject with credit enjoying cards is lots diverse than the guy above who had scientific charges. diverse regulations prepare. I very lots doubt something as draconian might ensue to you. and you don't get arrested for no longer displaying up in court docket. you in basic terms lose default judgment. greater probable, they'll in no way take the step of suing -- that takes time, money and attempt. yet no ensures. Your state has a statute of limitations, and then lenders won't be able to effectively sue you (varies, usually approximately 3 - 6 years). you may desire to learn that, and what triggers the "clock" and what if something can restart the clock on your state. some people in basic terms wait it out til SOL expires, then take action to sparkling up their credit comments.