Final answer:
Personal bankruptcy should be seriously considered when a person has charged the maximum on all their credit cards, spends more each month than they earn, reports capital losses, and has insufficient earnings and assets to pay their debt.
Step-by-step explanation:
Personal bankruptcy should be seriously considered when a person has charged the maximum on all their credit cards, spends more each month than they earn, reports capital losses and has insufficient earnings and assets to pay their debt.
When someone charges the maximum on all their credit cards, it indicates that they have accumulated a significant amount of debt.
If they consistently spend more each month than they earn, it means they are unable to meet their financial obligations and are accumulating even more debt.
Having capital losses and lacking the earnings and assets necessary to repay debt further highlights the financial difficulties they're facing.