The stigma is that people who file for bankruptcy have done something wrong; that they’ve lived beyond their means, or made bad choices. The reality is quite different. As you go down this list of the Top Reasons People File for Bankruptcy, ask yourself, “there but for the grace of God go I?”
1. Medical. Far and away the most common reason people file bankruptcy. Illness and injury can strike at any time, from anywhere, to anyone. Got Insurance? Its been described as “an umbrella that melts in the rain.” Once you’ve hit your policy limits you are on your own again, and only the most platinum of plans will fully compensate you for your lost wages.
2. Unemployment. A distant second. Your company downsizes. Your established business begins to fail. Covert age discrimination forces you out of your job. There are many reasons people become unemployed that have nothing to do with job performance.
3. Divorce. Half the income, twice the bills.
4. Fixed income. The myth of the “Golden Years”. You worked hard all your life, lived within your means, and earned your retirement. But that Pension and Social Security income remain stagnant while the cost of living, particularly medical expense, continues to rise.
5. Addictions. Gambling, prescription medications, online purchases… Additions come in many forms, not just the stereotypical image of illicit drug use.
6. Life Happens. You lend your car to someone and they’re at fault in an accident. Your basement floods but the insurance won’t pay. You’re the victim of identity theft. You have to take time off from work to care for a loved one. Bad things can happen to good people.
1. Medical. Far and away the most common reason people file bankruptcy. Illness and injury can strike at any time, from anywhere, to anyone. Got Insurance? Its been described as “an umbrella that melts in the rain.” Once you’ve hit your policy limits you are on your own again, and only the most platinum of plans will fully compensate you for your lost wages.
2. Unemployment. A distant second. Your company downsizes. Your established business begins to fail. Covert age discrimination forces you out of your job. There are many reasons people become unemployed that have nothing to do with job performance.
3. Divorce. Half the income, twice the bills.
4. Fixed income. The myth of the “Golden Years”. You worked hard all your life, lived within your means, and earned your retirement. But that Pension and Social Security income remain stagnant while the cost of living, particularly medical expense, continues to rise.
5. Addictions. Gambling, prescription medications, online purchases… Additions come in many forms, not just the stereotypical image of illicit drug use.
6. Life Happens. You lend your car to someone and they’re at fault in an accident. Your basement floods but the insurance won’t pay. You’re the victim of identity theft. You have to take time off from work to care for a loved one. Bad things can happen to good people.