I'm 39K in debt on 4 credit cards. No other debt except home mortgage in Texas. Also never missed a payment on anything, but now seriously thinking about Chap 7.
One credit card decided to jump from a fixed 7.9 to 19.9 because I was making the minimum payment only for the year. This has put me on the edge and I don't have enough equity to do a home loan. I also have 10k in IRA's and 10k in 401ks. Can I lose this if I go bankrupt? I did CCA about 10 years ago and was very disappointed in the interest rates negotiated. Don't want to go down that road again.

What do I stand to lose with Capt 7 besides pride.
Thanks for your reply.

BTW the credit card company is MBNA if anyone is interested.

I am not a lawyer and you should not take legal advice over the internet anyway. So, take my advice with all that in mind.

Personally, I think bankruptcy is a lousy way to solve your problem. Bankruptcy should be the absolute last choice.

My understanding of Texas law is that Texas is very debtor friendly in bankruptcy. That does not mean that you can keep your IRA, 401K, car, home or tennis shoes. Only a Texas bankruptcy lawyer can tell you exactly what you can and can't keep. I suggest you spend $150 for a hour of someone's time to know for sure. This is way too important to not have the right answer.

Personally, I think you would be better off trying to dig yourself our of the debt hole you are in. I agree that CCCS does not work for most people.

Consider negotiating discounted settlements and just paying off the credit cards. It will slam your credit to some degree but not nearly as badly as bankruptcy. You can try to negotiate settlements yourself or you can hire a professional to do it for you. If you hire someone, don't pay anything up front. There are good debt settlement companies who will work on a contingency fee.

Send me an email if you want more dialog.