Struggling with bills - should I file BK even though I still have a good paying FT job?

[MyFico_704]

I work at Wachovia bank (bought by Wells Fargo) and my job will probably be secure only for the next 18 months.  Wife also works at Wachovia and her group may be gone in 5 months.  We will struggle when she gets laid off!

Debts:

1st mtg - Wells Fargo - always on time (Individual)

2nd mtg - Wachovia - always on time (individual)

HELOC - Wachovia - $35k - always on time (joint)

CC - Wachovia = $14k; BoA = $33k.  (individual)

Can't cancel internet b/c kids use it for homework. Can't cancel $95/mo DirectTV b/c of "contract obligations" that will cost my over $450 to cancel.  We have cut back on our leisure spending, even cutting back on lunches for work..wife has been bringing in meals for the both of us...We are on a family plan for cell phones..just $65/mo...really need this..as we use for long distance call to family... 

*** Housing, food, utilitites come first...we are starting to fall behind on CC payments..and struggling.  FICO scores are now 699 and 691 (checked on 6/26).  Was 785 back in fall of 08'.  Wife's credit is still around mid 700s.  Still not 30 days late yet..but fear that day is fast approaching.

Should we file BK?  Since I have mortgage/CC with employer...how would filing BK affect me? Can they garnish wages for the CC? Can they fire me?

Any advice is greatly appreciated.

Thanks!

Message Edited by MyFico_704 on 06-29-2009 12:58 PM

[Anonymous]

Nobody can -- or should try to -- decide for you whether or not the file bankruptcy. I advise you learn as much as you can about the different kinds of BKs -- primarily Chapter 7 and Chapter 13 for non-farmer individuals -- and weigh both the benefits and costs of doing so. Bankruptcy stays on your credit record 7-10 years, but emotionally the negative effect can be much longer, not just to you but to family/acquaintances who are aware of your situation. Yet, it also can be a life-changing fresh start for some. All of which is why only you can make that decision.