1

YOU DO NOT HAVE ENOUGH INCOME TO PAY YOUR LIVING EXPENSES AND YOUR DEBTS.

This is one of the most common reasons to file for bankruptcy. There is simply not enough money left over at the end of the month to pay your living expenses and your bills. You could have had significant medical illness or injury or loss of employment or reduction in pay. Regardless of the reason, you cannot seem to get ahead, you feel like all you are doing is spinning your wheels, and you cannot see a light at the end of the tunnel. You would love to be saving money each month, but your minimum payments on your loans and credit cards and the like make that impossible. Bankruptcy may be a good way for you to break the cycle of financial distress and start over. It is designed to give you a fresh financial start by eliminating most (if not all) of your debts while allowing you to keep most (if not all) of your possessions.

2

YOUR CREDITORS WILL NOT STOP HARRASSING YOU OR YOUR WAGES ARE BEING GARNISHED.

Some creditors are more aggressive than others, and no matter how dire your financial situation, they demand more of you than you can offer. They want a payment sooner than you can provide or they want more money than you can afford to pay. They will not listen to reason and they call at all times of the day and into the evening, demanding payment. Or perhaps they have already sued you and gotten a judgment. Now your paycheck is being garnished, and you are struggling even more to make ends meet. The filing of a bankruptcy protects you from creditor harassment and wage garnishment. When you file, the automatic stay immediately goes into effect, and your creditors are prohibited from continuing to call you to collect, they cannot sue you for your debt, and they must stop the garnishment on your check.

3

YOU HAVE A MOUNTAIN OF DEBT AND IT WOULD TAKE YOU FOREVER TO DIG OUT FROM UNDER IT.

It is possible that, while you have money left over at the end of the month to pay your debts, you simply have such a large amount of debt that it would take you years and years to come out from underneath it all. No doubt there is incredible value in working a debt repayment plan and seeing it through to the end. On the other hand, if you feel that you have learned from your past and know how to better prepare for the future, or if you want to get out from underneath your debts sooner rather than later, then bankruptcy may be a good choice for you.

4

YOUR RELATIONSHIPS ARE SUFFERING BECAUSE OF YOUR STRUGGLES WITH DEBT.

Money problems can devastate relationships. The most solid marriage or family can be torn apart over issues of money. The most mild-mannered and gentile man or woman can become an absolute jerk when finances are too tight. When your situation has become dire, and you can feel your important relationships unraveling, it may be time to take some drastic action. You may have never thought that you would be one of "those people" that file bankruptcy. There is no shame in filing bankruptcy. You are not a bad person for filing. You can take responsibility for your financial situation instead of letting it get worse and hurting you and your family even more.

5

YOU HAVE A MORTGAGE ON AND POSSESSION OF A HOME THAT YOU NO LONGER WANT OR CANNOT AFFORD.

Many people file bankruptcies to retain a home that is in foreclosure, but what can you do when you do not want to keep your house anymore? Maybe you are having a hard time selling it, or you owe more on the house than it is worth. Or you got divorced and your ex stuck you with the mortgage note. In most bankruptcies, you can surrender the home back to the mortgage company and not owe on the mortgage once you get your discharge. The mortgage company will eventually remove the property from your name, either by foreclosure or a deed-in-lieu of foreclosure or something similar. You will still be liable for any homeowner's association fees that you have with the property until the mortgage company obtains possession.