Though some good news is coming out of the end of 2011 for residents of New York and elsewhere, it seems that -- economically -- Americans may still be in danger. In order to avoid filing for personal bankruptcy, people should do their best to pay attention to several financial warning signs.

The American Bankruptcy Institute said that the number of bankruptcies across the nation is down. Between September 2010 and September 2011, approximately 1.5 million filings had occurred. During the same period a year before, 1.6 million filings had gone through.

The Federal Reserve Bank of New York reported that 2.8 million homes had been foreclosed on across the nation as of the fourth quarter of 2010. At the time of that report, another 2 million homes were on their way. Though bankruptcies were down, it is obvious that the economy was still hurting.

Be sure to pay attention to warning signs that indicate you could be on the path to bankruptcy. One of the most obvious signs is constantly overdrawing on your bank account. If you cannot keep money in your checking account, something needs to change. It may be that you need to cut back on expenses or find another job. In order to stay afloat, something has to be done.

When some are in this sort of situation, they choose to use their credit card in the hopes that they will have enough money sometime in the future to repay the debt. If this is you, make sure to stay up on your payments. If you cannot make the minimum payment or the amount you have been paying for months is slowly becoming smaller, it may be time to reevaluate your finances.

Another indicator of bad financial times on the horizon is having to choose which bills to pay. If this is happening monthly, something is wrong. Do your best to make cuts so that you can afford to make both payments. Otherwise, it may begin to affect your credit score.

Source: The Street, "5 Red Flags for Your Financial Trouble," Brian O'Connell, Jan. 18, 2012