If you took over the role of Santa and give your friends and family more gifts than you could really afford, you may need to get bankrupt to remove this burden. Many people suffer from this due to the ease of borrowing through credit cards, and the plethora of gifts available. If your situation is not due to lack of a job, or purchase or large assets, you best choice for type of bankruptcy is Chapter 7. This way, your house and car do not get taken, and you income is not docked. But, because this is due to excess spending, you will probably have a hard time qualifying for Chapter 7, and will need to file Chapter 13. This is due to the Abuse Provision and Consumer Protection Act of 2005. If you do have to file Chapter 13, you may want to think twice...not only will your credit be hurt, but you could lose some important assets, and your salary could be docked. Unless you really overspent, or in addition to the Christmas bills, your home is underwater, or other factors, I would advise avoiding filing Chapter 13.

One alternative to use prior to bankruptcy is negotiating with the credit card companies. They may be willing to reduce your payments, freeze interest, or even reduce the amount you owe. It definitely can not hurt to ask, and could help you avoid the negative side affects of bankruptcy.