Filing bankruptcy is a difficult choice to make. It's a life changing decision that shouldn't be taken lightly. However, there are certain signs that shouldn't be ignored when it comes to how you are handling your finances. Here are four signs it's time to consider bankruptcy.

Maxing Out Credit Cards

Maxing out credit cards leaves little financial cushion if you have an emergency. It also raises the minimum payment to the point where it is sometimes difficult to keep up. Even missing one payment can put you over your credit limit after the penalty is incurred. Paying only the minimum payment each month will increase the amount of time you spend paying on the debt, since interest charges will absorb most of your payment. This prevents the actual balance from being reduced. If your credit cards are all maxed out, bankruptcy might be looming.

Making Payments More Than 10 Days Late

Making payments more than 10 days late, or after the grace period has expired, can lead to additional fees and penalty charges, which drives the amount you owe even higher. Continually making payments after the grace period has passed can also cause your credit scores to plummet. If you consistently find yourself paying bills, especially credit card payments, more than 10 days late, you may want to consider seeking credit counseling and/or filing for bankruptcy.

Depleting Your Savings

Once people max out their credit cards, they often begin to gradually deplete their savings account. When the savings are gone, they have no other reserve to fall back on. Having money in a savings account is important for those unexpected emergencies that can derail your budget or put a damper on your already limited lifestyle. If you've depleted your savings, you have nothing left to fall back on, financially speaking. 

Making Partial Payments and Payment Arrangements

When you find yourself having to make partial payments and payment arrangements on credit cards, utility bills and other important financial obligations, it is an excellent indicator that you are stretched far beyond your means. Filing for bankruptcy will allow you to avoid continually making these payment arrangements and partial payments and get back on track with on-time payments made in full.

When your finances begin to overwhelm you, and you find yourself choosing between paying one bill or another, filing bankruptcy may be your safest option. It not only relieves the pressure from excessive amounts of debt. It could be just what you need to get back on track financially so you can begin to work toward your future. Contact a professiona bankruptcy lawer, like Richard S. Ross - Bankruptcy Attorney, to help determine if you are eligible for bankruptcy.