Filing for bankruptcy can give you relief from your debts. Chapter 11 bankruptcy is designed to help individuals and business entities alike. Partnerships, limited liability companies and corporations can all take part in this form of bankruptcy. You have to meet a certain threshold of income in order to file this specific type of bankruptcy. Chapter 11 gives the filer a chance to reorganize one's debt and helps this person or company to have profitability after the bankruptcy and holds the debt collectors or creditors at bay for the time being.
Filing Chapter 7 bankruptcy may be a good idea if you qualify. You must not make too much money per year of you won't qualify. The way it is calculated is that you take six months of earnings and compare it to the state of California's median income. Such things as wages, salaries, bonuses tips; all these qualify as income.
Facing personal bankruptcy is hard enough without involving your children and their credit. Can you imagine being able to ensure that your children's credit will be pristine even if yours isn't? What happens when you put your son or your daughter on your credit card so that they can begin to build credit? Does it count against them if you stop paying your bill on time?