Is it wrong to put your family first? There is a point of no return, past which you cannot hope to recover. It is foolish and dangerous to continue to struggle after you lose hope. Congress would not have provided for bankruptcy if it is wrong or if it is not needed.

The Lord's Prayer contains this phrase in one translation: Forgive us our debts as we also have forgiven our debtors. Matt 6:12  See also Matt 18:21-35.

Forgiveness of debt is taught in The Old and New Testaments. If God is for it who can be against it?