Should we file for bankruptcy?

[Clarissa]

I am confused as to what to do - my husband and I recently reconciled and between the two of us, we have $40,000 in unsecured credit card debt. Although he makes very good money, approx. $3900 per month, we cannot keep up on all the minimum payments for these cards, let alone trying to pay the principal.He has a car payment and we own our house (or we will in 27 years anyway - we have not been late on the mortgage as that is our top priority. We also have 4 kids...... should we file? We figure since we have the house and vehicles that we can deal with the bad, bad credit that this will result in but are we forgetting something? We considered a debt consolidation but we heard this is more often then not a scam and ruins your credit as much as or more then a bankruptcy. Any advice is appreciated ~ thank you.Unfortunately all the late payments have resulted in a credit rating in the 500's which is too low to qualify for a re-fi.

[Gary C]

Try refinancing your vehichles or maybe trading down on more affordable vehichles... Plus don't eat out and buy cheap food and indgredients to cook with... Cut down your expenses as far as you... Get rid of anything that you can do without like the internet or maybe get another job or 2...

[haggamuffn]

Rather than asking in a public forum, where members aren't privy to the myriad details of your individual situation, you should consult with a local bankruptcy attorney.Most attorney's offer a free initial consultation, and with the new bankruptcy laws it would be best to get this advice from an expert.

[Mr_Blue_Eyes_27]

As someone else stated, If you can get a home equity loan to pay them off, that should be your first option. The next option would be a call to each of your creditors asking them to work with you through reduced rates, lower interest, etc. Many of them will work with you and that may be enough to help.Bankruptcy is definitely an option, but that will also require a payment plan. The bad credit score that will result will not be much worse than the impact of paying your bills late each month.