Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Both scenarios will hurt your credit, but with Bankruptcy your credit is wiped clean and you essentially get to start over. The credit bureaus take about a year to get caught up and your score goes back up.The bankruptcy stays on your credit report for 10 years.
If you do not pay the Credit Cards, they will eventually file a lawsuit against you for the balance. If given the judgment they will then garnish wages, bank accounts, and lien property. The only way to get rid of the judgments is to file bankruptcy or pay them.
Several judgments may look worse on your credit report, then the bankruptcy, but its hard to say for sure. The botXXXXX XXXXXne is you really don't have a choice in not paying the credit cards as they will come after you in Court.