Bankruptcy attorneys all over the country are reporting that their business is up 25-50% over last year. The reason? New bankruptcy legislation is set to take effect later this month, and the laws are much stricter than in the past. That may be the case, but the fact that tougher laws are coming doesn't mean that everyone should rush out to declare bankruptcy. Still, many people are undoubtedly wondering if their own situation warrants such a drastic choice.

Here are a few things to consider when deciding if you should file:

<Li>You are writing checks when the money isn't there - This is something that most everyone has done from time to time. Your bill is due on Tuesday, but you don't get paid until Friday. So you write the check, put it in the mail, and hope that by the time the check clears, you'll have your paycheck. There are a couple of problems with this. The time it takes for a check to clear is much shorter than it used to be. Checks can often clear overnight, and if the money isn't there, you can be assessed late fees by both your bank and the payee. As a bonus, we should point out that it's illegal to write a check when you know that the money isn't in your account. </Li>

<Li>Are you paying for groceries with credit cards? We don't mean doing so when you forgot your checkbook; we mean doing so when your checkbook is empty. Groceries are a recurring expense. You need to eat each and every month, so you should have money set aside for food. If you don't', and you find yourself using your Visa card to buy your milk, you've probably got a serious problem.</Li>

<Li>Your credit cards are maxed out and you are applying for new ones - When your cards are full, it's time to pay down the balances. If you are applying for still more credit because the cards you have are full, you're in trouble. More credit won't make the problem better; it will undoubtedly make it worse.</Li>

These are just a few things that might be warning signs of serious financial trouble. If you find yourself doing one or more of them on a regular basis, it's time to take a serious look at your total financial situation. Now might be a good time to discuss this with either a credit counselor or a bankruptcy attorney. And nothing good comes from waiting, so do it soon.
About the Author

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to establishing credit, debt consolidation and credit counseling.

Charles Essmeier

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Bankruptcy Overview Bankruptcy, when you come right down to it, is the process that enables those who are unable to pay their debts get a fresh start. It allows for some or all of these debts to be discharged or reorganized. Individuals or businesses may file bankruptcy. This enables you to clean the slate and get a 2nd chance with your finances. In most instances, bankruptcy provides a fair method for compensating your creditors as well. The bankruptcy process need not be your worst nightmare. However, there are certain requirements that must be met. You will be required to file a list of all of your outstanding debts and
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Congress recently passed the most sweeping bankruptcy legislation in more than twenty five years. The Bankruptcy Abuse prevention and Consumer Protection Act was written to make it harder for most personal bankruptcy filers to have their debt swept away through a Chapter 7 filing. The new law will require that potential bankruptcy filers pass a "means test" and most will not qualify for the Chapter 7 filing. Instead, they will have to file under Chapter 13, which requires a court-defined repayment schedule of up to five years. This legislation, considered by its detractors to be a "wet, sloppy kiss" to the credit card companies, has many people justifiably concerned
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