you should really try to avoid bankruptcy. especially if you own a home. credit cards are no big deal. most of what you owe them is interest charges and fees and add on crap. the debt is unsecured. they really have no hope of collecting anything if you go under. you can usually offer them 30% and they'll take it. and still make a profit. your house however is a different story. once you file bankruptcy it is illegal to renegotiate your home loan. even if both sides want to. the bank has to take a lump sum of whatever it can get for dumping your house in a depressed market. wee. and you of course lose your home. so before you screw yourself, close your credit card accounts. be sure to get letters from them saying so. then go to your bank and renegotiate your loan. the bank really does want you to keep your home. more precisely, they want you to keep making payments on your loan.