No. of Recommendations: 4
First of all, your question about which is "best" should be asked of a lawyer, not a message board. A lawyer knows the laws, the exemptions for your state, and can go over your assets/bills with you and let you know what would work best for your situation.

Second of all, there are restrictions on who can file chapter 7. There is a "means test" for chapter 7. If your income is over the median income for your family size and state, chapter 7 may not be an option.

Your 401k should be protected regardless of declaring bankruptcy or not. Creditors can't touch your 401k (unless you take the money out of it).

The "best" route would be looking at trying to pay off/down the debt as much as possible while you are still working.

I'm not sure what you mean by "extra credit card debt". What's "extra" about it?

I think you might be borrowing trouble, though, if you're still employed and able to make your payments, bankruptcy shouldn't even be on your radar yet.

Figure out a plan to pay your debts.

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.