Q: My friends are advising me to declare bankruptcy because I owe so much on credit cards and can’t pay all my bills each month. I don’t want to lose my house, but won’t declaring bankruptcy make things worse? How can I tell if I should or not?

A: Sometimes declaring bankruptcy is the surest way to keep your house. If you are months behind in mortgage payments and the bank refuses to work with you, in many (but not all) cases, bankruptcy could save your home.

You should consider bankruptcy:

. If credit card companies or other creditors are suing you, or if the bank is going to foreclose.

. If, month after month, expenses are bigger than income and there seems to be no realistic chance of ever paying all the debts.

. If you pass the median family income test. Threshold levels depend upon the size of your family. For example, a family of four with an income of $63,501 or less in 2007 passes this test. Even if your income appears to be over the limit, you may still qualify after certain expenses are factored in. However, the income test does not apply when most debts are business debts.

On the up side, bankruptcy can relieve a person of most debts, and allow you to keep your house. Virtually all of a person’s basic possessions, including most if not all the equity in the home or vehicle, will not be affected. If you have to choose between paying credit cards and heating the house, then maybe bankruptcy can help.

On the down side, some kinds of debts, such as student loans, certain taxes, child support and a few others, will not be affected by bankruptcy, and bankruptcy can stay on your credit report for as long as 10 years. You will still be able to get a loan, but the interest rate will be high. “Toys” such as snowmobiles and four-wheelers could be lost in the bankruptcy. The same is true if you have a large amount of cash or a camp or other nonessential items.

Whatever you do, don’t base your decision on the advice of well-meaning friends and relatives. The law in this area is very complicated. If you think you need to consider bankruptcy, talk to a qualified bankruptcy attorney.

This column is a service of the Lawyer Referral and Information Service of the Maine State Bar Association. Its contents are a general response to the question and do not constitute legal advice. Questions are welcome. Just go on-line to AAL@mainebar.org, describe your question and note you are a BDN reader. Written questions mailed to “Ask a Lawyer,” Bangor Daily News, P.O. Box 1329, Bangor, Maine, 04402-1329 will be forwarded to the LRIS.