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: 1) Medical Expenses
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A study published in the American Journal of Public Health in 2019 found that 66.5% of bankruptcies in the U.S. were due to medical issues like being unable to pay high bills or due to time lost from work. 3 ﻿ Even with health insurance, high deductibles and copays, plus job loss, impact Americans. Rare or serious diseases or injuries can easily result in hundreds of thousands of dollars in medical bills—bills that can quickly wipe out savings and retirement accounts, college education funds, and home equity . Once these have been exhausted, bankruptcy may be the only shelter left, regardless of whether the patient or his or her family was able to apply health coverage to a portion of the bill or not. ( Find out what you can do to avoid a financial meltdown when there's a medical emergency. 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.