Here we will look at a few tips than may help you determine if you should file.

• You are being sued for nonpayment. Lawsuits are always a last resort for them after they've called and nagged and pleaded you for the cash you owe them. Financial institutions do not want to sue their customers; it takes time and costs plenty of money. Being sued is a pretty clear sign of trouble. If you've reached a point where you looking at a lawsuit, and you can't pay back the bill, then it is more than likely time to consider bankruptcy, or court-ordered debt relief.
• You are applying for more credit cards because you have no room on your existing ones. Obtaining more credit cards won't make your situation better; it will make it much worse. In the end, an additional bank card just means one more bill that you cannot pay. If your cards are full or "maxed out" you don't need additional credit cards, you need to pay your bills.

• Are you working extra to pay back your bills? We don't mean the occasional overtime to pay the holiday gift expenses; we are talking about expecting extra hours each and every week because you cannot pay the rent payment or the car note without working extra. Should you have more debt each month than you can afford with your regular, non-overtime salary, you might have a problem. You will not always be able to count on extra hours, and besides, who wants to? Life is too short to work yourself to death.
• Are you paying for food with your bank cards? We don't refer to the occasional night out at the Italian place; we are discussing packing cars full of groceries at Kroger and paying by charge card because you don't have the cash in your bank account. If you don't have money in the bank, and you're paying with a credit card at 20% per year, you have a serious problem. Groceries are a recurring expense; you should have cash from your paycheck to pay for it.

It can not hurt to check with a bankruptcy professional if you are in financial trouble, but doing it sooner rather than later might be a good start. If you find any situations in the above situations that describes you then you certainly should consider at least speaking with an attorney who works in debt law. These are just guidelines, and not set rules.