Percentages represent reasons an individual files bankruptcy. Sources were combined to average top reasons Americans filed.
Medical Expenses (42%)
Recent studies have shown that 42% of all personal bankruptcies are a result of medical expenses. The study also reveals that 78% of those who filed had insurance.
Job Loss (22%)
Millions of Americans are unemployed, which makes them much more likely to file for bankruptcy. Unemployed individuals often pay for insurance out-of-pocket.
Uncontrolled Spending (15%)
Credit card bills, large mortgages, and expensive car payments contribute to bankruptcy. Uncontrolled spending habits can put Americans on a path to filing.
Divorce (8%)
Legal fees, child support, alimony and the burden of providing for a household on one income can result in ample financial stress. Divorce rates are nearly 50% in America.
Unexpected Disaster (7%)
Unexpected disasters such as earthquakes, floods, or hurricanes can be nearly impossible to prepare for. If a homeowner is without insurance, this can possibly lead to bankruptcy.
Avoiding Foreclosure (1.5%)
An individual can spend a life time preparing to purchase a home. Just to avoid foreclosure, some Americans will file for bankruptcy to re-organize debt.
Poor Financial Planning (1.5%)
Not having a sound financial plan can lead to bankruptcy. Financial experts recommend establishing savings for expenses that could lead to debt.
Preventing Loss of Utilities (1%)
Along with home foreclosure is the risk of losing utilities. Keeping lights on and a house warm can be a factor for someone to file.
Student Loans (1%)
Student loans won't be eliminated like other unsecured debt, but it may be possible to consolidate student loans with a bankruptcy.
Preventing Repossession (1%)
If a creditor repossessed your vehicle, filing bankruptcy may force them to return the car, and any other personal property that may have been repossessed.
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Medical Expenses (42%)
Recent studies have shown that 42% of all personal bankruptcies are a result of medical expenses. The study also reveals that 78% of those who filed had insurance.
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Job Loss (22%)
Millions of Americans are unemployed, which makes them much more likely to file for bankruptcy. Unemployed individuals often pay for insurance out-of-pocket.
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Uncontrolled Spending (15%)
Credit card bills, large mortgages, and expensive car payments contribute to bankruptcy. Uncontrolled spending habits can put Americans on a path to filing.
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Divorce (8%)
Legal fees, child support, alimony and the burden of providing for a household on one income can result in ample financial stress. Divorce rates are nearly 50% in America.
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Unexpected Disaster (7%)
Unexpected disasters such as earthquakes, floods, or hurricanes can be nearly impossible to prepare for. If a homeowner is without insurance, this can possibly lead to bankruptcy.
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Avoiding Foreclosure (1.5%)
An individual can spend a life time preparing to purchase a home. Just to avoid foreclosure, some Americans will file for bankruptcy to re-organize debt.
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Poor Financial Planning (1.5%)
Not having a sound financial plan can lead to bankruptcy. Financial experts recommend establishing savings for expenses that could lead to debt.
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Preventing Loss of Utilities (1%)
Along with home foreclosure is the risk of losing utilities. Keeping lights on and a house warm can be a factor for someone to file.
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Student Loans (1%)
Student loans won't be eliminated like other unsecured debt, but it may be possible to consolidate student loans with a bankruptcy.
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Preventing Repossession (1%)
If a creditor repossessed your vehicle, filing bankruptcy may force them to return the car, and any other personal property that may have been repossessed.
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