Filing for bankruptcy is never something a person wants to do or looks forward to. Unfortunately, however, there are many instances in which it becomes necessary to do so. While bankruptcy is never anyone's go-to choice, if you do find yourself in a situation where bankruptcy is your best way out, know that there are many positives that could potentially come out of the situation. However, with that said, you should still only file for bankruptcy if you have exhausted other options. If you're not sure where you stand or if you should file, it's always best to talk to a lawyer for advice; in general, though, the following signs typically indicate that bankruptcy is a smart choice.

Sign #1: Your Credit Cards Are Your Lifeline

Credit cards are meant to be used for fun purchases or very expensive purchases. They provide a way for you to enjoy something now and pay for it later. What credit cards are not for, however, is for paying your living expenses.

If you've found that you're paying your rent and your other bills, such as utility bills, on your credit cards because you have no other options, that's usually a pretty good indicator that bankruptcy is the only thing that's going to save you.

Sign #2: Your Debt Increases No Matter What

These days, there are lots of different ways to try and get out from under debt. There are credit counseling programs, loan modification programs, and more. If, however, you've tried one or even several of these "second chance" options and still find that your debt is readily increasing, this likely means that nothing is going to work for you except bankruptcy.

Sign #3: You're Working Yourself to the Bone

A lot of us, when we fall into debt, commit to working hard and cleaning up our messes. And, while that's a good attitude to have and shows responsibility, there's only so much you can do before you wear yourself thin. If you're working two or three jobs already and are still struggling to pay off debt and make ends meet, it's probably time to call it quits and file for bankruptcy.

Remember, there is no shame in filing for bankruptcy. Everyone makes mistakes, and this is your chance to learn and grow from yours. That's a chance that not everyone gets, so take advantage of it and hold your head up high. For more information, talk to an attorney like Wiesner & Frackowiak, LC.