There are many reasons why people might choose to file for bankruptcy. Knowing when to consider this option is important because you don’t want to file if you don’t need to, but you shouldn’t wait too long. There are some specific cases in which filing is the best option that you have.

Some of the markers that point to needing to file for bankruptcy are fairly clear. When you are making your decision, ask yourself these questions:

• Do you have a budget in place? You need to know where your money is going and ensure you pay the most urgent bills. Set your budget and rember to follow it.
• Can you pay your bills at all? You might be able to get a second job or find another way to pay off creditors. This could save you from the expense and effort of bankruptcy.
• Have you tried to negotiate your bills? Creditors will sometimes negotiate with you just for the assurance that you are going to pay. You may have to be honest and let them know that you are considering bankruptcy and tell them about your hardships before they offer you any options.
• Are you expecting any financial changes? Many people know when they are expecting to get a bonus or other type of financial boost. It is important for you to review your full financial situation. Look at what’s changed in past few months and see if there is anything that might prevent you from having to file bankruptcy.

You also need to look at the requirements for the case. You will need to go through credit counseling before you file. While needing to file for bankruptcy isn’t anything to be ashamed of, you must ensure that you are using it correctly.