When you are in a financial rut, you may not know what to do to get yourself out of it. Your debt may seem insurmountable. If your money problems are not going away and are only getting worse, you may begin to wonder if bankruptcy is right for you.

While bankruptcy may sound scary, it is simply a process that exists to relieve you of burdensome debt. It may be the best option in some circumstances. Here are a few reasons filing for bankruptcy may be a good choice.

Creditors are calling, harassing or even suing you

When you owe a lot of money, the entities you owe it to will start contacting you. It usually starts with letters and phone calls. Over time, the language they use may become more persistent and threatening. If enough time passes on delinquent accounts, you may even receive lawsuits from debt collectors. If you are receiving any kind of contact from creditors, it is time to start thinking about bankruptcy. Declaring bankruptcy can stop creditor harassment and lawsuits.

You do not see your financial situation getting better any time soon

While you may be struggling at the moment, think ahead a little bit. Will you be able to land a better paying job soon? Do you expect any inheritance or gifts? If your circumstances are temporary and there is a cash flow in your future, you may want to wait to file. But if you do not see a sign of any improvements, bankruptcy may be better for you.

You are relying on credit cards for essential expenses

Credit cards are useful tools if you can pay them off and use them for discretionary expenses. But if you find yourself covering everyday expenses with your cards, this is a sign you may be in trouble and need bankruptcy. You should not need to rely on your cards to cover your bills, gas and groceries.

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