With rising living costs, mounting student loan debts, and soaring housing prices many are feeling financial strains. If this sounds familiar, and you feel like there is no way out; filing for bankruptcy may be an option for you.

There are many misconceptions about what being ‘bankrupt’ entails, and how it can affect your life after. The list below is designed to help you think through your financial situation to determine if filing is the right decision for you.

1. Out of Work

If you’ve been struggling to find work and have been out of it for an extended period of time, bankruptcy is something you should consider. This is especially true for those out of work with little to no savings to live off of. Without a consistent cash flow coming in, debts will only continue to rise, regardless of your income.

2. Falling Being on Payments

If you’ve already spoken to your creditors and worked out a payment plan, but still find yourself struggling to make monthly payments- you should explore alternative options. Simply put, if you are only making the minimum payments on your debts, you owe more than you can afford. This is not sustainable, and you should seek a way to resolve it.

3. Behind on Tax Payments

If you have been forgoing tax payments to sustain your immediate needs, you are clearly in financial distress. If you owe money in taxes and are unable to pay despite your best efforts, consider filing for bankruptcy. After all, you will then be able to afford your needs without having to worry about creditors.

4. Pending Lawsuits

Another sign that filing may be the right decision for you, is if you have pending or ongoing lawsuits regarding your debts. Regardless of the outcome of these trials they can be stressful, long, and costly. It is important that you don’t fall victim to them, and be forced to pay more than you can.

5. Constant Calls from Bill Collectors

If you can’t get through a day without hearing from a bill collector; this is a sign that your finances are in dire trouble. As annoying, and irritable as these calls and letters may be these companies will not stop until their money is paid back in full.

6. Using Credit Cards for Cash

If you are someone that is using your credit cards to pay off other bills, or to fund your immediate needs it is a sign that you do not have enough money coming in. Using cards to pay off other debts typically results in larger amounts owed (due to building interests). Although these cards can provide some temporary relief to your financial strains the long-term effects can be devastating.

7. Can’t Count your Debt

If you have lost track of the companies you owe, and bills you have to pay- it may be time to call in a professional. Rather than struggle by yourself to count up the bills and form a payment plan; advise with a professional who can tally up your total debt and tell you exactly how much you owe.

8. Feel Out of Control

Having to go through sleepless nights and panic attacks over your monthly bills shouldn’t be your reality. Stress and anxiety can lead to a number of healthcare problems such as high blood pressure, heart disease, obesity and diabetes. This is why if you’re dealing with financial related stress you should seek help immediately.