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VanDLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 833
Experience:  Chapter 7 & 13
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Hi.We are in a financial crisis.We have about 50,000 worth

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Hi.We are in a financial crisis.We have about 50,000 worth of credit card debt.Combined we make only 30,000 a year.Alot of the debt was accumalated years ago when our incomes were higher and cost of living was lower.But the balances were and still are high and we never got to pay them off.We have stopped paying on them because other things are more important to pay:house,food,utilities.My question is what will hurt our credit the most,bankruptcy or just letting the cards go unpaid?
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  VanDLaw replied 8 years ago.



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.

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