There is no formula for figuring out when you should file a bankruptcy case. However, below are some indicators you may need to file for bankruptcy:
You have lawsuits filed (or being threatened) against you.
You are current on mortgage and car payments but not other debts.
You are behind on your mortgage payments but want to catch up.
You are facing foreclosure or a foreclosure has already happened.
You are unable to keep up with a house mortgage wish to surrender it.
You have a second mortgage or home equity line of credit.
You are delinquent on HOA or condo fees.
You are paying minimums on your cards and the balances are increasing.
You are struggling to make the minimum payments on your cards.
You are being contacted by creditors by phone.
You have had one or more vehicles repossessed.
You owe state or federal taxes.
You have small business related debts.
You are unable to make your student loan payments.
You have judgments and/or judgment liens.
You are more than 30 days behind on your bill payments.
You are being contacted by collection agencies.
Your wages or your bank account may be garnished.
You have high medical bills not covered by insurance.
You are facing issues with MVA registration.
You owe parking tickets or other traffic violations.
You have debt relating to a divorce.
You do not have a substantial amount of savings.
You need a fresh start.
The above list is not exhaustive. There are numerous reasons for filing for bankruptcy.