Should You File for Bankruptcy?

The question of whether you should file for bankruptcy should be considered as a business decision, not an emotional one. You should approach this decision just as a major corporation would. Examine your assets, your liabilities, and the likelihood of being able to pay your bills in the near future. It is important not to allow your emotions to keep you from examining your situation rationally and looking for a realistic solution to your financial problems. During your examination, ask yourself the following questions:

• Does the amount of your debt total more than 25% of your gross annual income?
• Are you making only the minimum monthly payments on your credit cards?
• Are you borrowing from one credit card to pay another?
• Have you missed any payments?
• Are creditors calling you?
• Are you receiving letters from your creditors?
• Are you behind in paying your car loan?
• Are you behind in paying your mortgage or rent?
• Are you being sued for failing to pay a debt?
• Are your wages being garnished?
• Is your bank account being seized?