When can I file for bankruptcy? Should I???

I divorced ten years ago. I retired from the military two years ago. The court awarded my ex-wife 20% of my military retirement, which works out to about 500 dollars a month to her. Since my retirement I have not paid her. I told her that I cannot afford to pay, since I still pay child support payments, which will be decreased by 1/2 in a year, then over with in five years. She finally got tired of that excuse and has filed a motion for judgement for the money owed, plus a payment plan to ensure i continue to pay. She also wants a deed of trust on my house, which I rent out (when I got out of the military I moved away from where I had purchased the house). I have remarried. My wife does not work, raising our two small children. I am currently employed.

I have about 20,000 dollars in assets. I owe about 55,000 dollars in credit debt, 30,000 dollars in various auto loans. I owe 110,000 on my house, which is a rental property now.

In the past I have been able to make my all my payments, as long as my house stays rented. To pay for food we have been using credit cards, but we still pay the minimum on our credit cards. Progressively our credit debt has increased, and my ability to use credit cards to buy food will cease.

My house is now vacant, so I recv no income from my rental property. Once I am required to start paying my ex-wife I will no longer be able to pay all my bills. I had a bit of money for emergencies, it is being used to cover us while our house is unrented. That money will soon be gone. It appears that I will begin to run short about 800 dollars a month. If I fail to pay my credit cards the minimum then this will give me about 700 dollars a month to be used towards food, gas, etc (basic living expenses). I pay about 1500/month, the minimum, on the credit cards I am in possession of.

It seems bankruptcy is inevitable. I see no way to pay off these debts. I want to continue to pay on my house and car debts. I'd liked to see the credit debt discharged.

I have used my credit cards as recently as this week, and will make the minimum payments, this month.

Should I immediately curtail use of the credit cards, prior to filing for bankruptcy?

Should I stop paying the minimum and use the available money to pay for living expenses?

When is the earliest I should file?

I feel so dismal. I know myproblems started with the divorce; receiving all the debts, and little property. But I should have been more disciplined. I just see no way out of this situation other than bankruptcy.

Please point me in the right direction.

thanks.

[bigun]

The first step is to see a lawyer asap. You really need to quit using those cards until you decide if you'll file or not. Any charges made 60 days prior to filing will be viewed as suspect. The faster you get legal help and make the decision to file, the quicker you can quit paying the cards and let 60 or 90 days pass and then file.