When Should Bankruptcy Be Filed?

In our view, a bankruptcy case should only be filed when there is no realistic alternative for managing debt.  The following situations tend to indicate that a bankruptcy filing may be appropriate:

  Your wages or your bank account have been garnished. 
  Most of your debts are unsecured debts like credit card bills or medical bills.
  Your total debt, not including your car or house loan, is more than you could pay, even over several years.
  Collection agencies are calling you at home or at work.
  Your payments are more than 30 days behind on more than one bill.
  There are lawsuits pending against you.
  You have high medical bills not covered by insurance.
  You owe income taxes that you are unable to pay.
  You have few free and clear assets.
  You have little or no savings.
  You have had property repossessed, such as a car or boat. 
  Your mortgage lender has threatened or started foreclosure proceedings against your home.