The average American has $15,675 of credit card debt, and many people are struggling to make only the minimum payments on their credit cards. If you are like the average American and are experiencing problems making your payments, you may want to consider filing for Chapter 7 bankruptcy. If you want to find a way out of your debt, the two main options you have are debt consolidation and bankruptcy, and here are three reasons why bankruptcy might be a better option.

It offers immediate relief from creditors

One benefit offered through bankruptcy is something called an automatic stay. As soon as you file, the automatic stay prevents all creditors from contacting you. This means that you will no longer receive phone calls, letters, or emails regarding the debts you owe; your creditors cannot legally contact you in any way after you file for bankruptcy. This is not the case with debt consolidation programs. If you choose a program to consolidate your debt, you are likely to still receive phone calls and letters until the debts are completely paid off.

It offers forgiveness on credit card debt

Credit consolidation makes it easier to pay your credit card bills by compiling them into one lump payment per month. The monthly payments you must make can last for years, so this means you will not be debt-free for a long time.

On the other hand, bankruptcy forgiveness is instant. After filing for bankruptcy, you will be required to go to court. The court will review your case and work through it, and eventually they will offer you a discharge on your debts. Discharging of debts is also called debt forgiveness, and this means you will no longer owe these debts.

It will help you start fresh much faster

When you compare the two options, you will always get a fresh start faster if you use bankruptcy instead of a debt consolidation program. Bankruptcy offers many benefits over debt consolidation, and you should compare all the differences before you make your decision.

One thing you should realize is that you may not qualify for Chapter 7 bankruptcy if your income is too high. Because of this, you should seek help from a bankruptcy lawyer to find out if you would qualify. If not, you could still use Chapter 13 bankruptcy; however, this branch of bankruptcy will require that you repay some or all of the debt you owe.

For more information and options for filing for bankruptcy, contact a law firm, like O'Brien and Dekker Attorneys at Law.