Bankruptcy - A good choice for you? Part 2

Once you apply for bankruptcy, you will not be able to have your debts eradicated again for eight years after filing. It's not an easy decision to file for bankruptcy; there are long-lasting considerations, including the fact that the bankruptcy will remain on your credit record for 10 years. With the new bankruptcy legislation in effect, millions of Americans are rightly concerned about whether they should apply for debt relief.

Continued below

Here we will review a few suggestions than may help you determine if you should file.

• Are you working extra to pay your monthly debts? You won't always be able to be sure of extra hours, and furthermore, who wants to? Life is too brief to work yourself too much. If you have more debt each month than you can afford with your ordinary, forty hour payday, you may have trouble. We don't mean the occasional overtime to pay the Holiday present costs; we are talking about expecting overtime each and every week because you cannot pay the rent payment or the auto loan without that money.

• Are you shelling out for food with your charge cards? We do not mean the occasional dinner out at the steak place; we are talking about packing cars full of food at Piggly Wiggly and paying by credit card because you do not have the funds in your bank account. Food is a recurring expense; you should have cash from your paycheck to cover it. If you don't have cash in the bank account, and you're paying with a credit card at 20% a year, you have a significant problem.
• You are submitting applications for more bank cards because you have no room on your existing cards. If your bank cards are full or "maxed out" you don't need more cards, you need to pay your bills. Receiving additional charge cards won't make your predicament better; it will make it much worse. When all is said and done, a new credit card just means one additional bill that you can't pay.
• You are being sued for failing to pay your bills. If you've arrived at a point where you are being sued, and you cannot repay the debt, then it is probably time to think about personal bankruptcy. Lenders do not want to sue their customers; it takes time and costs a lot of money. A lawsuit is a pretty obvious indication of trouble. Lawsuits are always a last resort after they have contacted you and nagged and begged you for the money you owe them.

If you find anything in the above descriptions that fits you then you probably should consider at least speaking with an attorney who specializes in debt law. It can not hurt to talk to a legal expert if you are in trouble, but doing it now rather than later ought to be a good start. These are just advice, and not set rules.