Take a look at your total living expenses including food, housing, utilities, transportation, insurance, clothing, medical care and factor in a "rainy-day" account. Then take a look at how much income you have on a monthly basis making sure to include all sources.
Next, list all of your creditors and how much you owe them. Separate your secured creditors from your unsecured creditors. Secured creditors are those that you have pledged some sort of asset in order to receive the credit. Examples of secured creditors are your home mortgage company or the bank that is financing your car loan. Determine the current value of those assets and include this information in your list.
Now it's time to accurately determine if bankruptcy is for you. . Consulting an attorney is advisable, as is, taking time to properly weigh all options. In some instances, it might be better to try and work out a repayment plan on your own or get advice and assistance from a consumer counseling credit service instead of filing for bankruptcy. Perhaps, bankruptcy is not the best option for you right now but may prove to be a better option for you in the future. The idea is to not panic and be overcome by the pressures of overwhelming debt. Instead, try and have a clear head and make proper decisions based on gathered information and the status of your financial resources.
