Nobody wants to make the decision of when to file for
bankruptcy, but at some point it may come up. Bankruptcy
has a bad effect on your credit amongst other
ramifications.

Filing bankruptcy should only be a last resort when all
other options have failed you. But when should you consider
filing for bankruptcy?

You find yourself constantly borrowing from one source of
credit to pay off another. You have begun taking cash
advances greater than $500 to pay for living expenses.

You borrow to meet regular expenses like food and utility
bills. You have stopped answering your phone because the
only calls you receive now are from creditors.

Creditors are threatening to sue you, or a suite has
already been started against you. These are signs that you
are indeed in some serious trouble. These are signs that
you may want to consider filing for bankruptcy.

Then it comes to the decision of what sort of bankruptcy
you need to file for. The most common are chapter 7 and
chapter 13. Chapter 7 has the advantage is wiping the slate
clean and setting you on a fresh start immediately. Chapter
13, you will be making payments for three to five years.

But, as stated before, you should only consider filing for
bankruptcy when you have exhausted all other avenues. There
are many various alternatives out there to be considered,
but if none are practical for your situation, then speak
with a professional bankruptcy lawyer to learn what the
next step it.