A personal bankruptcy is something many people don’t want to look into. They may feel it’s a kind of defeat to agree to bankruptcy, even though bankruptcies could be the fresh start they need.

As someone struggling with credit-card debt, you’re in a good position when it comes to bankruptcies. The bankruptcy code generally permits all unsecured debts to be eliminated upon a bankruptcy discharge, which means you could eliminate all your credit debt through this process if you chose to do so.

Should you choose bankruptcy?

This is the main question you need to ask yourself. To start with, if you haven’t had your credit impacted by missed payments, then you may not want to go through bankruptcy. Choosing other options, such as consolidating your debts or getting a second job to pay more on your debts each month, could work better in the short term than killing your credit with a bankruptcy.

For people who are stretched beyond the breaking point, bankruptcy could be the right choice, though. It gives you the option of eliminating debt and getting your finances back under control. If you can’t make payments, your credit likely already suffered as a result. With bankruptcy, you’ll be able to stop paying on debts that keep building up and actually get ahead.

Bankruptcy isn’t for everyone, and there are multiple types you’ll need to learn about before you decide if it’s right for you. Your attorney can help make sure you understand what a bankruptcy does for you and to your credit, so you’re prepared to make an educated choice.