Many of us have been overwhelmed by credit card debt at some point in our lives. Sometimes we might overindulge and use credit cards for things we don’t really need, but often, people rely on credit cards to pay for their basic necessities when there in a tough spot. Credit card debt is sometimes unavoidable if you have no other way of paying for the things you need. This can be extremely difficult to get out of when it happens. If you have a significant amount of credit card debt, you might be wondering, “is it better to pay back credit cards or go bankrupt?” 

Bankruptcy is a chance for a fresh start, but it’s not right for everyone. There are a lot of positives and negatives to consider to see if it’s worth it for you. Learn more about whether you should pay back your credit card debt or go bankrupt. 

When Should You File for Bankruptcy?

Bankruptcy isn’t a decision you should take lightly. Just because you have credit debt doesn’t necessarily mean that bankruptcy will be beneficial for you. Bankruptcy comes with consequences, so you might decide to continue paying back credit card debt. Although it may be time-consuming and cause some financial struggles, some with serious credit card debt can pay it off without requiring bankruptcy, depending on their financial situation. 

Here are a few signs that bankruptcy might be right for you.

You Can’t Afford Your Bills

Paying your bills can often be difficult, but it can be impossible to manage in some cases. If you don’t have a high enough income to pay your bills while struggling with credit card debt, there’s no way for you to pay everything off. You might be left every month unable to pay bills and afford basic necessities, which could mean you need to file for bankruptcy. 

Creditors are Harassing You

Struggling with debt is hard enough on its own, but creditors constantly getting in contact with you makes it even worse. If you can’t afford to pay off your debt, getting constant calls from creditors isn’t going to help you pay it. This is something that bankruptcy can help stop. 

Creditors are Taking Other Actions to Receive Payment

Creditors are determined to get back the money they’re owed and can take a few different actions to get it, even if you can’t afford it. For example, you might be worried about having your wages garnished or having a lawsuit filed against you if you owe money. Actions like these are stopped when you file for bankruptcy. 

Find Out if Bankruptcy is Right for You

You don’t want to have to go through the bankruptcy process unless you absolutely have to. However, many people don’t know when the right time to file for bankruptcy is. It can be difficult to know what’s the best option for you, which is why it’s important to speak with a professional. At JPPLaw, we can discuss your financial situation to determine what route is best for you. If bankruptcy is the right choice, we’ll be here with you throughout the process to help you get out of credit card debt.

If you’re struggling to pay off your credit card debt, contact one of the top bankruptcy attorneys in Scranton, PA, to see if filing for bankruptcy can help.