Bankruptcy - Is it the right thing for you? Part 2

It's not a simple decision to seek debt relief; there are long-lasting considerations, including the fact that the filing will stay on your credit report for ten years. Once you file for bankruptcy, you will not be able to have your obligations wiped out again for eight years after filing. With the new bankruptcy legislation in effect, millions of Consumers are rightly worried about whether they should apply for debt relief.

Here we will review a few tips than may help you choose whether or not you should file for debt relief.

You are applying for extra charge cards because you have no room on your existing ones. If your credit cards are full or "maxed out" you do not need extra credit cards, you need to pay your balances. Obtaining more charge cards will not make your situation better; it will make it much worse. Ultimately, a new credit card only means one additional bill that you can't pay.

Are you working overtime to pay your debts? You will not always be able to count on overtime, and besides, who wants to? Life is too short to work yourself to death. If you have more debt each month than you can pay with your ordinary, forty hour payday, you probably have trouble. We don't mean the occasional extra hours to pay the Christmas gift costs; we are talking about requiring overtime every week because you cannot pay the monthly rent or the car or truck loan without working extra.
 

Are you making payments for groceries with your credit cards? If you don't have cash in the checking account, and you are paying with a credit card at 20% per year, you have a serious problem. We do not refer to the every-now-and-again night out at the steak place; we are talking about loading cars full of groceries at Piggly Wiggly and making payments by charge card because you don't have the cash in your checking account. Groceries are a recurring expense; you ought to have funds from your salary to cover it.

You are being sued for nonpayment. If you have reached a point where you are being sued, and you cannot repay the debt, then it's almost certainly time to consider going to court. Lawsuits are always a last resort for them after they've written and nagged and pleaded you for the cash you owe. A lawsuit is a pretty obvious indication of a problem. Lenders do not wish to sue their customers; it takes time and costs a lot of money.

These are just suggestions, and not hard and fast rules. If you find anything in the above descriptions that sounds like you then you certainly should consider at least meeting with an attorney who works in debt law. It can not hurt to talk to a debt professional if you are in financial trouble, but doing it sooner rather than later ought to be a good start.