I want to know if it is better to file Chpt 7 Bankruptcy or go ahead and negotiate down my debt and pay it off. It's only about 26k on 4 cards. However, it will cut whats left of my IRA in half and there is the 10% penalty plus taxes. I've been laid off for over two and a half years and kept paying everything until a few months ago when my Bankruptcy Attny advised me to stop paying my cards.