If several of the following apply in your situation, you might consider bankruptcy:

*your wages or your bank account have been garnished.

*most of your debts are Unsecured Debt like credit card bills, hospital or doctor's bills, etc.

*your total debt, not including your car or house loan, is more than you could pay.

*collection agencies are calling you at home and/or at work.

*your payments are more than 30 days behind on more than one bill.

*there are lawsuits pending against you.

*you have high medical bills not covered by insurance.

*you have little or no savings.

*you have had property repossessed (such as a vehicle).

People who have had their wages garnished can especially benefit from a bankruptcy because the bankruptcy will stop the garnishment and could potentially help you get some of the garnished money back.

A law passed in 2005 makes it more complicated for some people to file for bankruptcy and to be freed of past debts. Most people, however, can still file for bankruptcy.

You should talk to a lawyer before deciding whether to file for bankruptcy. Each bankruptcy case is unique and your lawyer can tell you what will happen to you, your debts and your property in bankruptcy.