You should consider bankruptcy:
- When you cannot reasonably pay your bills
- 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
- If you are more than two months late on your bills
- If you get a foreclosure notice from the bank or a lender
- If you are depressed about your financial situation
- If your income does not sufficiently pay off or pay down your bills
- If you cannot budget yourself out of debt within four years
- If your loan or mortgage has been "called" or accelerated
- If you have withdrawn from your 401(k) account to pay regular monthly bills
- If you have a severe financial setback such as the loss of a job or a major surgery without medical insurance