What can I expect?

[Anonymous]

Due to divorce, paying child support, illness, current wifes poor health not allowing her to work and paying for 3 surgeries in two years, I am unable to make ends meet. I spoke to a credit counceling service today. They recommended bankruptcy. I don't want to do that. I have cashed out all investments and can pay off 25% of my cc debt. I have applied for a second job and I expect to get it. I am doing what I can. I am negociating with my cc companies to terminate my cards and lower the rates. I have no late payments. I know there is no easy answer, but how badly is this going to affect my credit?

[Anonymous]

Sorry, I didn't get the whole question asked. I also would like to know if I have the cc company close one card and lower the rate, how will that affect my other cards that already have a low rate? Thank you for any help.

[MattH]

Sometimes a BK has less impact on credit than the multiple baddies that would result from trying to avoid BK, so you should talk to a reputable financial advisor about your specific situation.  Also, if any of your investments are in tax-favored retirement accounts then you should NOT cash them in to pay off debts, first because cashing them in may have tax consequences and second because retirement accounts may be protected from your creditors in a BK!