Most people, when asked, would point to prolonged unemployment or even a recent job loss as the main reason that people would even contemplate much less proceed with seeking bankruptcy protection through the courts. Others would suggest that failed businesses are the primary culprit. Both of these mindsets, while understandable, would prove to be incorrect.
Recent studies have shown that the leading cause of bankruptcies in the U.S is the purchase of durable consumables such as automobiles and houses. Too many individuals are buying items that they simply cannot afford to carry, especially if things take a sudden or unexpected downturn. Another very big factor in seeking bankruptcy protection is health care or medical bills.
According to many recent studies having a serious medical ailment leaves a family or individual more than 50% more likely to be forced into bankruptcy, there are however contrasting studies that suggest that this is a distorted view and that the adverse effects of the medical condition such as being unable to work because of the condition as the contributing factor and not the medical bills themselves.
There is also a segment who believes that it is credit card debt that is the primary cause but one would have to extrapolate the data and see what the credit cards were used to purchase to see exactly what that data suggested. Is it consumable items like the 1st study suggests, or medical bills as the others indicate?
The take away from all of these studies is that there are a wide variety of reasons why people are forced into bankruptcy and they are not always the fault of those who choose that route. Always remember to seek out the advice of a bankruptcy attorney , certified credit counselor, or trustee in bankruptcy before taking any actions to find out exactly where you stand and to get the best advice possible.