I made a very difficult decision this year. I am done fighting with the CC companies over their shady practices and I am going to file Chap 7. I am in the plannig stages now and not yet late on any debts but getting ready for the firestorm that will erupt once I start missing payments. The first will be Citi. They raised my rate to 29.99% and refuse to negotiate until I have missed the payment. This is a nice pay back to a customer like me who has NEVER been late on a CC in my life. Its just not fair.

My story isn't that different than most. I am in my early 30's, raising a daughter and went through the financial ringer in divorce. Ex-H and I were upside down on our house. He kept the house as he makes way more $ and could afford it. It was a better solution than selling it and having us both still owe on the darn thing after the fact. Luckily that was our only joint debt and that has since been resolved and I have not been an owner since the divorce. He took his debts, I took mine and life went on.

The wrench is that I lived on my CC for the two years prior to my divorce while I was separated. I was robbing Peter to pay utilities, phones, gas, groceries etc. Luckily I never got into cash advances but life expenses add up. So thats the vicious cycle. Yes, I was using all my income to pay payments and using the credit cards to live. I can't get out from under the boulder and now with the rates being jacked I can't even afford the minimum on the first of many cards. I am terrified of the universal default that will kick in once I am late on that first card.

I decided to consult an atty. He made everything sound so simple. So on his advice I have pulled of my current bank and opened a new bank account. I am starting this year living on cash only and will not be paying anymore CC payments. just my fed student loans, car payments and living expenses. I am waiting 90 days to file so that the charges I made over the holidays are not considered fraud. I never intended to file until this disaster with Citi. But now I feel like I need to do this to get back on track.

Still very nervous but getting all my ducks in a row to file in April. Going to use my tax return money to pay the attorney.

Hope I can learn from this website and others situations.