Deciding to file a bankruptcy is a difficult decision for people for several reasons. First, many people hope to never have to file a bankruptcy. But it is also a difficult decision because people are not sure if they have reached the stage where it makes sense. Are there warning signs? There are. Here are some of the warning signs for when a bankruptcy should be considered. You never pay more than the minimum on credit cards or even take cash advances just to be able to meet your monthly obligations. You have depleted savings and are now withdrawing from retirement accounts. You are borrowing money from friends and relatives or resorting to payday loans. You are missing some payments and getting collection calls. Your car is about to be repossessed. You claim extra dependents and as a result you owe taxes to the state you live in such as the State of New Jersey or the Commonwealth of Pennsylvania from your tax return and have to try and get a payment plan to pay the tax. Any one of these problems are grounds to at least consult with a bankruptcy attorney to see whether it makes sense in your particular circumstances.