I have $33,000 in credit card debt. All was kinda fine till I missed a payment. Then they charged me a late fee, over limit fee,and others. Also they doubled my interest rate from 10% to 20%. I sought out companys that offer to settle your debt for pennys on the dollar. But they all responded with my income is to low and debt to high. They said they could'nt help and refered me to a bankruptcy company.
I make $40,000 a year and own a home, but like alot of people these days home prices are falling. My home is worth less than I owe. The bankruptcy lawyers said if your going chapter 7 you should include the house to. Better now than a year from now. Do it all at once.
I could possibly borrow money to pay off the Credit cards, but even with that gone I realistically can afford a budget with the house and bills. I am a single father of an 8 year old boy. Should I give it all up or try to keep the house.
Also, if inbankruptcy I file chapter 7 do I have to pay taxes on the $33,000 in credit card debt? And if the house is sold in bankruptcy for less than the note am I liable for the difference of taxes on that?

