Well, it's been a pretty depressing day. We met with and retained a BK attorney today to file Chapter 7. We had hoped to avoid it and to somehow turn things around enough to at least be able to offer partial settlements to our creditors, since we do feel morally obligated to pay our debts. BUT since we are now about 90 days delinquent on all of our accounts, and we are still barely living paycheck to paycheck, we just couldn't see any way to manage even partial settlements on our $140,000 credit card debt.
Add to that the fact that one creditor has already moved my husband's account to their litigation department, and we felt that we had to protect our wages from being garnished. We would have waited to see if they actually filed suit, but since it's very likely that my husband will pick up some seasonal work over the next two to three months, we didn't want to risk not meeting the means test by waiting to file (because after that two to three months, the seasonal work will die off--but it will stay in the means test for six more months).
So we did what we felt we had to do, but it's depressing. HOWEVER, I must admit that it did feel great to be able to tell the collector who just called that we have retained an attorney and please don't call back! (I have to look for whatever bright spots I can find at the moment!)