Never-Ending Credit Card Bills: Is it Time to File for Bankruptcy Protection?

Is it time to file for bankruptcy? A growing number of Americans ask this question every day. The problem begins with a large credit card debt and the inability to pay the entire amount due. The interest grows greater each month while you still need to use the card for additional expenses. Then, despite your regular but small credit card payments, you receive a notice that you must do something to lower your credit card debt. In the midst of the credit card crisis, other financial problems and life changes may have developed too: your mortgage may have been adjusted and you may be required to pay several hundred dollars a month than previously.  Your daily credit letters may have increased from one to three or four and you may be facing harassment from creditors for your never ending bills. Is it time to file for bankruptcy?

Should You File for Bankruptcy?

This is a critical question and one that requires a well thought out and carefully considered answer. Filing for bankruptcy must be your last resort when attempting to resolve your overdue and mounting financial responsibilities. Although it initially appears to be the only (if not the best) answer, remember that once you file, your life will change forever. Those changes may cause greater and more serious stress than you have experienced with your present debt.

• Your already fragile credit will be lost. The bank that walked you through several financial difficulties may now deny you accounts and/or debit/credit cards. Potential employers often refuse to consider perfectly wonderful candidates for jobs because of bankruptcy.
• Have you consulted a credit counselor? If you have, did you follow the suggestions given to you?
• If consolidating your debt was suggested, have you done so? Have you been able to relieve some of your debt with this plan?
• Do you know that you can present options to your creditors such as specific monthly payments or asking for a reduction in what is due?
• If the company has hired a collection agency whose representative calls you five times a day, demanding payment, it is worth negotiation. Often large amounts of debt will be forgiven or reduced. Once this is accomplished, you will be on the road to repairing your credit.

Getting Help

When none of this works, its time to consult a bankruptcy attorney and learn what your options are.  Take a deep breath and consider the impact this will have on you and your family. Seek counseling, and make a firm resolve to live with the implications of bankruptcy.