Very few people approach the possibility of filing for bankruptcy casually, but many people are so reluctant to take this important but difficult step that they wait too long. Waiting too long means placing yourself in danger of losing property and being sued, so read on and know the red flags that tell you it's time to do a chapter 7 bankruptcy filing.

You are struggling just to pay for food and other necessities.

While it's pretty common for many people to live from paycheck to paycheck, there may come a time when you are having problems making that money stretch. When you have no back-up plan, even a small emergency could wreak havoc on your budget. When you take into consideration how much money you are sending to your creditors every month, it's easy to see where your food and housing money is going.

You are being threatened with a foreclosure.

Nothing can hurt worse than the thought of losing a place to live, but often those large mortgage payments being to pile up. Those past due amounts then incur interest and late charges, making it seem that you'll never get caught up. The good news is that a chapter 7 bankruptcy filing will provide you with a little breathing room. Once you have filed, you will have a few months without having to worry about losing your home.

Take this time to try to get your mortgage payments caught up. Where will the money come from? One of the best things about a chapter 7 bankruptcy filing is the way your credit card bills simply go away. You don't need to wait for the bankruptcy to be final, you can cease paying those high minimums the moment you file. That can mean a lot more money to use for things like your mortgage.

You are forced to use credit cards to pay bills and to take cash advances.

It can really sneak up on you, one minute you're using a credit card to pay your auto insurance (just this time), and the next minute you are relying on the rapidly decreasing available credit on your cards just to make ends meet. Taking cash advances from your cards represent another easy but evil way to get fast funds to meet needs. Those cash advances often carry increased fees and interest rates, contributing to your overall negative financial situation.

Any one of the above should serve as a warning that you need to speak to resources like Clinger Richard S. See what a fresh start could look like for you.