The most common causes of bankrupt are from medical expenses, job loss, poor/excess use of credit, divorce/separation, and unexpected expenses. First, medical expenses cause bankrupt for the reason that if an illness or injury comes along it costs so much money that it blows out savings, education funds, etc.. Even if it doesn't blow them out it will decrease you amount of money tremendously. Second, job loss, whether being laid off from a job or quitting it still is devastating. Also by loosing your job your loosing insurance's which causes even more problems, and will bring you further into bankruptcy . Next, poor/excess use of credit, people, not all, can not control their spending. Some things that can eventually spiral out of control would be credit card bills, installment debt, car and other loan payments, until finally the the person can not reach the payment cost. Then its divorce/separation. divorce/separation causes several problems for both partners. There are legal fees, marital assets, child support and or alimony, then keeping your own household after they have split. Meanwhile the legal costs alone are expensive. Last, unexpected expenses, there is loss of property due to theft or casualty, such as earthquakes, floods, tornadoes etc. and if the owner is not insured it can lead to bankruptcy. So there are many reasons for bankruptcy. In my opinion all of these reasons are accurate. They all make sense to why it would cause bankruptcy and i believe they do and are the top five reasons.
I found my information from:http://finance.yahoo.com/banking-budgeting/article/109143/top-5-reasons-why-people-go-bankrupt?mod=bb-checking_savings
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