Title: Top 5 Reasons Why People Go Bankrupt
Headings: Top 5 Reasons Why People Go Bankrupt
Top 5 Reasons Why People Go Bankrupt
1) Medical Expenses
2) Job Loss
Key Takeaways
3) Poor or Excess Use of Credit
Top 5 Reasons Why People Go Bankrupt
4) Divorce or Separation
5) Unexpected Expenses
The Bottom Line

Content: Read Steering Clear Of Medical Debt .) 2) Job Loss
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Whether due to layoff, termination or resignation, the loss of income from a job can be equally devastating. Some are lucky enough to receive severance packages, but many find pink slips on their desks or lockers with little or no prior notice. Not having an emergency fund to draw from only worsens this situation, and using credit cards to pay bills can be disastrous. According to Bankrate's 2019 Financial Security Index Poll, nearly three out of 10 Americans do not have emergency savings on hand to help cushion a job loss or other financial crisis. 4 ﻿
Key Takeaways
Medical debt and job loss due to illness remain the cause of over half of American bankruptcies. 3 ﻿
Three out of 10 Americans do not have an emergency fund. 4 ﻿
Bankruptcy is often viewed as a last resort in a financial crisis. The loss of insurance coverage and the cost of COBRA insurance can also drain the job seeker's already limited resources. Those who are unable to find similar gainful employment for an extended period of time may not be able to recover from the lack of income in time to keep the creditors at bay. (