Is personal bankruptcy a good choice? Part 2

Here we will examine a few tips than may help you determine whether you should file for bankruptcy.

Continued below

• Are you working extra hours to pay your debts? We don't refer to the occasional extra hours to pay the Christmas expenses; we are talking about needing extra hours each week because you cannot pay the rent or the car note without it. If you have more bills each month than you can pay with your ordinary, forty hour check, you may have a problem. You won't always be able to count on extra hours, and besides, who wants to work extra all the time? Life is too short to work yourself too much.
• You are being sued for not paying your bills. Being sued is a pretty obvious sign of financial trouble. If you have reached a point where you looking at a lawsuit, and you can't repay the bill, then it's likely time to think about filing for bankruptcy. Court cases are always a last resort after they have called and nagged and pleaded you for the debt you owe them. Credit card issuers do not like to sue their borrowers; it takes a while and costs lots of money.

• Are you shelling out for food with your charge cards? If you do not have money in the bank account, and you're paying with a credit card at 20% annually, you have a major problem. Food is a regular expense; you should have cash from your paycheck to cover it. We don't mean the occasional dinner out at the steak place; we are referring to loading cars full of groceries at Kroger and paying by bank card because you don't have the funds in your bank account.
• You are submitting applications for additional charge cards because you have no room on your existing cards. Acquiring additional bank cards will not make your situation better; it will make it worse. When all is said and done, a new credit card just means one more bill that you cannot pay. If your credit cards are full or "maxed out" you do not need extra cards, you need to pay off your bills.

These are just suggestions, and not hard and fast rules. If you find anything in the above descriptions that sounds like you then you probably should think about at least speaking with an attorney who specializes in debt law. It can not hurt to check with a legal expert if you are in trouble, but doing it sooner rather than later might be a good start.