If you are considering filing for bankruptcy, you are not alone. Many people have and will continue to file for bankruptcy based upon the times with corporate layoffs, downsizing and continuing business failures. Although not inclusive, the general guidelines below will help you determine if you should consider filing bankruptcy.

1. You should file for bankruptcy when you cannot reasonably pay your bills.

2. If your income does not sufficiently pay off or pay down your bills, it’s time to consider bankruptcy.

3. If your monthly debt is 1.5 times your monthly income. For example, if you have a monthly net income of $2,800 but your monthly expenses are about $4,200, it’s time to think about bankruptcy.

4. If you cannot budget yourself out of the debt within four years, it’s time to seriously consider bankruptcy.

5. If you are more than two months late on your bills, bankruptcy may be a consideration.

6. If your loan or mortgage has been “called” or accelerated, it’s time to seriously consider bankruptcy.

7. If you get a foreclosure notice from the bank or a lender; it’s time to seriously consider bankruptcy.

8. If you have withdrawn from your savings account for two months; bankruptcy may be a consideration.

9. If you are depressed about your financial situation, it may be time to consider bankruptcy.

10. If you have a severe financial setback such as the loss of a job, major surgery without medical insurance, etc., it’s time to seriously consider bankruptcy. Generally, people filing for bankruptcy are dealing with the following situations:

• Loss of their job or their primary means of support;
• Been laid off from their job;
• Been demoted or given a significant pay cut;
• Experienced major family problems leading to divorce, child custody or separation;
• Excessive major credit card problems;
• Catastrophic medical-doctor bills from an uninsured major surgery or illness such as terminal cancer;
• Desperate financial situations with little hope.