The leading cause of bankruptcy is…

No, as I’ve discussed in past posts, you do not necessarily have to lose your home when you file for bankruptcy protection.

The Leading Cause of Bankruptcy Filings
Medical expenses are consistently cited as the foremost reason for bankruptcy filings. Individuals and families are often left with insurmountable medical bills due to unexpected illnesses, injuries, or chronic conditions. Despite having health insurance, many are burdened with high deductibles, co-pays, and uncovered treatments, which can quickly lead to overwhelming debt. Even those with insurance may face financial distress due to lost income from being unable to work while undergoing medical treatment. The combination of astronomical medical costs and reduced or lost income forces countless individuals to seek bankruptcy protection as a last resort.
The Devastating Impact of Medical Debt
The weight of medical debt can have a devastating impact on individuals and families, leading to financial ruin. Despite working diligently to make payments, the sheer magnitude of medical bills can push individuals into bankruptcy as they struggle to keep up with their healthcare expenses while balancing their other financial obligations. Furthermore, the stress and anxiety of facing insurmountable medical debt can have severe effects on one's mental and emotional well-being. Bankruptcy may provide a necessary relief valve in such circumstances, offering individuals a chance to regain control of their financial lives and start anew.