How do I know if a bankruptcy is my best option?

One way to determine if you need a bankruptcy is to itemize your living expenses such as rent/mortgage, car payments, utilities, food, and clothing. Take these expenses and compare these to your earnings. Do not include your debt. Do you have money left over that could be used to repay debt? Could you repay your entire debt within 3 years? If you say ‘yes’ to this, then you may be able to avoid a bankruptcy. Unfortunately, today many people have lost their jobs and are unable to pay their rent or other expenses. With balances on credit cards, people who have lost their jobs or had a catastrophic illness would not be able to manage their lives without the ability to do a bankruptcy. So, the first thing that people should do once they determine that they cannot repay their total debt within 3 years is to meet with a bankruptcy attorney. The attorney can explain your legal rights and advise you as to the best option so that you can make an informed decision.