Personal bankruptcies are at an all-time high. The prolonged poor state of the economy has been hurt by high unemployment and a housing market that can't seem to find its bottom point.

The number of personal bankruptcies (usually under Chapter 7 or Chapter 13 of the Bankruptcy Code) rose to over 1.5 million in 2010. Many expect the number to be even higher in 2011 and 2012.

Many people in desperate financial hardship are nonetheless reluctant to file for bankruptcy. A strong social stigma is still attached to bankruptcy, but the fact is that this tool has been made available to people for just such an emergency. Through bankruptcy, people in serious debt can get a financial fresh start.

Here are some tips on what to know before you file for bankruptcy:

Don't wait to file once you know your financial situation is dire.

One of the most common things said by people who have completed a bankruptcy is that they should have filed sooner. They knew they needed bankruptcy protection, but were reluctant to get started on the process. One unexpected benefit, for many people, is the reduction in stress that they get from taking the first steps toward a clean slate. In addition, many people spend money trying to stay out of bankruptcy, when in fact they should have and could have held onto that money through the bankruptcy process.

Get a good Fort Lauderdale bankruptcy lawyer.

Advice on topics such as what property will be exempt from liquidation in bankruptcy is best received from someone who really knows what they are talking about. An experienced lawyer can give you good advice on whether or not bankruptcy is your best option, and if bankruptcy is recommended, they can advise you on what type of bankruptcy to pursue and when.

Know something about bankruptcy.

Getting a good bankruptcy lawyer is important, but if you don't know anything about bankruptcy going in, it will be harder to judge whether your potential attorney knows what they are talking about. You should educate yourself on some of the basics of bankruptcy.

File your tax return.

To file for bankruptcy, you need to have filed your previous year's taxes. Don't put off filing your tax return, or it could delay your ability to file for bankruptcy.

Source: Business Insider "Filing Bankruptcy Top 5 Things You Must Do" 5/13/2011