When to stop paying your credit card bills and file for bankruptcy

by | Jul 4, 2014 | General

Filing for bankruptcy is a very serious decision, it will impact you for years to come but if you are struggling to pay high interest credit card debt, whether you should simply stop paying and file for bankruptcy depends on a few things; these are the things that a Las Vegas Nevada bankruptcy attorney will ask you:

* Can you see your way clear to ever paying it back?
* Are your creditors suing you or harassing you?

Pay back your credit card debt?

If it is credit card debt that is forcing you to consider bankruptcy you need to take stock, consider whether you can afford to pay it off or not. Depending on your income level you may find that you make too much to declare Chapter 7 bankruptcy, if your disposal income is in excess of the limit you may find that your only option is Chapter 13 which forces you to repay a significant portion of the debt.

It is always worth talking to the credit card company, you may be able to settle your debt for less than the current total. As an alternative you may be able to combine all your credit card debt into a single loan at a much less interest rate, this is known as debt consolidation. If none of these suggestions seem good then perhaps declaring bankruptcy is the best thing to do.

Are you being sued?

When your payments to the credit card company stop, it does not take long for the phone to start ringing. The more in default that you are the worse the calls get, they become more frequent and more harassing. It is the constant harassment that drives many people to seek relief by declaring bankruptcy.

If your debt is considerable the credit card company will usually push through with a law suit. When the credit card company or the debt collection agency gets a judgment against you they can go after your assets or garnish your wages. If it reaches this point then a Las Vegas Nevada bankruptcy attorney will probably suggest that you consider your legal options under bankruptcy law.

If you have reached the point where the decision has been made to file for bankruptcy continuing with payments, any payments against your credit card debt is futile; a waste of money. However, if you wish to stave off bankruptcy and avoid the damaging effects to your credit score then stopping your payments will just make things worse.

When you are faced with a tough decision like declaring bankruptcy talking to a Las Vegas Nevada bankruptcy attorney first can be helpful. You are invited to contact the Law Office of Hayes & Welsh. A Nevada attorneys dedicated to creditors’ rights. Visit website for more information.

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