Well, only you can decide that question. Perhaps with the help of an attorney or other counselor, you can help make your decision. What factors should you think about? Here are some ideas to get you thinking………How much debt are you in? Can you realistically pay it off over a reasonable amount of time? What type of debt is it? What is your current income? Future prospects? Are you using credit cards to pay off other credit cards? Are you going to payday loans to make it through till next payday? Are you living paycheck to paycheck? Are you able to save anything? How is your current credit history? Bankruptcy will be a negative on your credit record, is it worth affecting your credit record to get rid of that much debt? That is relative…..What are your other options? What are your priorities? Are you current on the house payment? The car payment? The first step is to stop using all credit cards immediately. You might want to contact a credit counseling agency website, for tips on budgeting. I recommend www.moneymanagement.org.
Stop borrowing money. And take an honest assessment of your financial situation. It isn’t a question of what you want but more what you need. Are you robbing Peter to pay Paul? Using the equity line of credit to pay for living expenses or credit card payments? Can you survive without borrowing? Do you have health insurance? That is more important than paying off a credit card it seems to me. If you have children, do you have sufficient life insurance to protect them should something happen to you or your spouse?
The important thing to realize is that there are many resources for people. Online and over the telephone. You are not facing these financial problems alone. It is not worth getting sick over. It is only money. It does not mean you are a failure. Bad things do happen to good people. You are more than your present financial circumstances. This too shall pass. And remember, there is life after bankruptcy.