How should I decide whether to file bankruptcy?

A. There is no specific amount of debt which you must have in order to file bankruptcy. Ordinary people filing bankruptcy often average between $8,000 and $12,000 in debts, not counting house mortgages and sometimes car debts. However, people also file bankruptcy with less debt, and some people manage not to file bankruptcy with larger debts. 

People turn to bankruptcy when creditor harassment becomes unbearable, when their house is about to be foreclosed or car repossessed, when lawsuits or wage garnishments are threatening, or when debt payments so overwhelm their income that they cannot properly feed and clothe themselves or their families. By filing bankruptcy, they can achieve a fresh financial start in their lives. If you feel that bankruptcy will be useful or will shortly become inevitable, filing your bankruptcy creditors are actually taking you to court, garnisheeing your wages, or starting foreclosure will help you by allowing time for better bankruptcy planning and preparation.