Declaring bankruptcy as an individual is not a minor matter; it's a legal process that affects your credit and financial standing for many years. However, it can also be the best choice for many individuals when they're facing serious financial difficulties. If you've been considering bankruptcy but aren't sure if it's the right choice for you, of course you want to speak with a bankruptcy attorney and get all the facts. You also want to consider some key factors that might help you to make your decision.

1. Note the interest on your debt and how it will continue to add up

Your debt alone is not the only consideration when it comes to declaring bankruptcy. The interest rate and charges on that debt can sometimes add up to more than the debt itself, and if you're making minimum payments on that debt, you may never pay it down because of the interest alone. It's good to sit down and figure the interest you're paying on your debt and how much you'll wind up paying over the next few years if you don't declare bankruptcy, and consider if that money might not be better spent.

2. Consider carefully if you can reasonably get yourself out of your debt

If you haven't made a considerable dent on your debt already, what would make you think that you can pay it down within any reasonable amount of time? Unless you're going to be getting a better job or a large raise at work, if you don't take care of your debt today then chances are you'll continue to be facing it over the next few years, if not for the rest of your life.

3. Your money is often better spent than trying to pay down overwhelming debt

 In some cases you may qualify for a debt consolidation loan or a home equity loan to pay down your debt, but this means paying those loans instead. That money you use to pay those loans does not work for you; it's not earning interest or being saved for your retirement, but is being used to pay off debt that could otherwise be discharged with a bankruptcy. If you're already struggling to pay bills and to put money in savings, you might ask why you would use those funds to pay off debts that could be erased with a bankruptcy filing.

Only you can determine if bankruptcy is the right choice for your financial situation, but keep these points in mind when making your decision. Talk to places like Abakhan Bankruptcy Trustees if you need help deciding along the way.