The decision to file for bankruptcy is a highly personal one, based on your particular financial situation. It should only be considered once you have dug deep to tighten your budget and sought credit counseling.

Filing for personal bankruptcy has long lasting repercussions. It can affect your credit — and your life — for as long as 10 years.

It can hurt your ability get a job, buy or rent a car or home and even to purchase insurance. Employers, landlords and insurance companies are increasingly relying on credit reports to help them make decisions.

A bankruptcy filing can even make it next to impossible to hold onto your bank accounts and credit cards.

Keep in mind, if you have a steady job and just aren’t juggling your debts adequately or are living beyond your means, a judge may not even grant you a bankruptcy filing.

If you have a steady income and still can’t make ends meet despite your best efforts to do so, you may consider filing for Chapter 13, which will allow you to keep some of your belongings, such as a house or car with a 3-5 year repayment plan. This type of filing will remain on your credit report for 7 years.

If you don’t have a job or steady income you may consider filing for Chapter 7, which will allow you to erase most of your debts, but will affect your credit report for 10 years.

However, both forms of personal bankruptcy will not erase debts such as student loans, recent taxes owed, child support or alimony.

With all these warnings, sometimes filing a bankruptcy is inevitable to escape mounting debts.

If you are facing court orders that will grant your creditors the right to garnish your wages or even raid your bank accounts, then maybe filing bankruptcy is an option worth considering.

Just remember it is a last resort that can have long-lasting negative consequences on your life and lifestyle. Before it is embarked on, you should meet with an attorney or financial advisor to have them determine whether your particular financial crisis will be solved by bankruptcy filing.