If your unemployment persists and you are not able to pay your bills, bankruptcy may be a viable option for you. Bankruptcy is a serious step that can cause long-term damage to your credit. Before filing a petition for bankruptcy protection under Chapters 7 or 13, make sure you understand the consequences. Bankruptcy might relieve your immediate financial pain and might be the only viable option, but approach it cautiously. Seeing a nonprofit credit-counseling firm like InCharge should prove very helpful in creating a plan to deal with disrupted finances. Credit counseling can help you design an emergency budget that helps you allocate your money to cover expenses. You will need to rank priorities and pay essential expenses first. If you had credit card debt before you lost your job, a counselor might recommend a debt management plan that consolidates debt into a single monthly payment. The plan will allow you to pay off debt in three to five years.