Depending on the extent of your debt and other financial and personal factors, bankruptcy may or may not be your best option. Some debtors feel too guilty to file for bankruptcy or view doing so as a failure.
However, allowing debt to continue to build can cause much more damage to your financial health. Many of the penalties and interest rates compound, meaning you end up owing more and more the longer you do not pay back your debts. In addition, the stress and worry of continuing to have serious financial issues can have a negative impact on your physical and mental health.
Not dealing with your financial issues means you may continue to hear from debt collectors. In some cases, you may be sued for any unpaid debts or have your salary or wages garnished to pay your creditors.