Top 8 Reasons Why People Go Bankrupt
The statistics of bankruptcy in America are alarming. According to US bankruptcy court statistics, more than 1.5 million people file for bankruptcy every year. Most significantly, nearly 97 per cent of bankruptcy filings are made by individuals, not by businesses. Here are some of the reasons why people go bankrupt: Medical expenses - A recent study from Harvard shows that medical expenses account for nearly 62% of personal bankruptcies in the United States. The research also showed that 72% of those who filed for medical insurance had health insurance. This debunks the myth that only the uninsured face financial crisis during medical-related expenses. Reduced income - Companies like to cut down on their expenses. This means that many employees face a pay-cut and reductions in bonuses. The result to employees can include bankruptcy. Job loss - Job loss can deplete one’s savings and assets. Also, the people who face a job’s loss have no understanding about when and how they can be emp
