Here's something to consider about Bankruptcy --  it doesn't solve the main problem: income is not sufficient for the level of expenses.

The "self-help" solution to avoid the hassel of bankruptcy is to just walk away from all debts and turn any secured property over to the bank.

Then you move into a cheap apartment, cut your expenses way down, make NO payments to any debtors (write off all your debts as a loss), and recover your position.

Then wait and see what happens - most of the creditors will actually realize there is nothing they can do and eventually leave you alone.

First, almost all the credit card companies will not actually sue you. If they do, just answer the complaint with a general denial and wait. They won't spend the lawyer's fees to do anything after that, and the case will be dismissed. More likely, they will be unethical and try to get a  "default judgment" without really serving you. File a motion asking for relief from default (obtain this form from a legal self-help book or paralegal service). The judge will always grant it - and their default is reversed, and you file an answer. Again, the credit card company will at this point drop the case because they don't want to pay legal fees.

Next, keep waiting and the statute of limitations on suing on a contract will expire. This is four years in California. That means if your last timely payment on a credit card was four years ago, and you haven't used the card to buy anything in four years, then the time has expired for anybody to sue you. So waiting four years (just enduring the Collection letters, calls, etc.) will solve all the debt problem automatically.

(Many collection agencies will buy debt that is past the Statute of Limitations for a very cheap rate - like fractions of a cent per dollar of debt - and just work their pile of debtors hoping one of them will pay off. They know that they can never collect legally, but they work the pile anyhow, threatening people. Ignore them, they can't do anything.)

Anyone who wants to file a lawsuit will then realize that although you are not currently filing for Bankruptcy, it makes no sense for them to go through the expense of getting a judgment against you when as soon as that judgment is issued, you can then turn around and discharge it easily in bankruptcy.

(If you already have judgements against you, that will stay on the books for 10 years (in California), and the creditor can get it renewed. If it was a default judgment, get it dismissmissed; if not - then you might as well file Bankruptcy and get rid of it since it might never go away otherwise).

Now this solution avoids filing bankruptcy, yet you still have bad credit - which is no different than filing bankruptcy.  This will mean "cleaning up" your credit report after the statue of limitations is expired to expunge the bad items.

Of course, bad credit can be a blessing. No more temptation to borrow recklessly like before.

After bankruptcy many people immediately get back into problems because they don't stop and solve their main issue: expenses are much higher than income.

By the way, it is much easier to save expenses than to earn income. It will cost you $1.30 in income to equal merely $1 in savings because earning that income will cost you taxes, social security, tithe, gas, time, effort, etc. etc. Cutting expenses is 100% - all money saved stays in your pocket.

So tell the bank to come get the keys to your condo, move into a cheap apartment (or live with relatives), buy a second-hand car, turn back in the leased vehicle, return all the clothes bought to the department store, sell the rest at a garage sale, cancell the cell phone, cable bill, and internet. Shop at the 99cents store and Pick'n Save, Etc. Etc.

That is the dicipline Christians should have - - too many are caught up in the luxury of today's world and feel like they have to have all the goodies - loving the world. Cultivate gratitude for the things you already have, and learn to appreciate the simple life.

Then... by not filing bankruptcy you will be waiting upon the Lord. Letting time go by to solve the problem, rather than going to court to cancel them. Moses ran away from Egypt for 40 years and all his problems were eventually solved; Joseph took the family to Egypt to wain until Herod died, and David was on the run until Saul died. Sometimes God's people get in a mess and need to be on the lamm a while, waiting for God to solve the problem over time.

- MM