What causes other people’s bankruptcies?
Bankruptcy has long been associated with overspending and irresponsible behavior. However, that’s myth, not fact. While overspending sometimes plays a role in bankruptcy:
- Medical crisis is the number one cause of bankruptcies. More than half of all bankruptcies are caused by a medical crisis. Medical bills mount up and jobs are lost because of the crisis.
- Widespread job loss and underemployment in the current economic crisis are, of course, a factor.
- The shocking housing crisis left many families bankrupt when they couldn’t keep up with payments or were forced to move because of a job change and couldn’t sell their house to cover the debt owed.
- Immoral predatory lending* has also been a leading factor in American bankruptcies.
*As mentioned above, we recommend the well-researched predatory lending documentary, Maxed Out. It will make you angry but also help you to understand what may have happened to you.
Here’s where to find Maxed Out:
- The MaxedOut.com website.
- Free YouTube excerpt: Maxed Out.
- Free at your library.
- Maxed Out is available on Netflix streaming and DVD. A monthly streaming membership is $7.99 and you can get a free trial month (but remember to cancel).
- Maxed Out is also available on Amazon.com. A 48-hour rental costs $2.99 and is free with Amazon Prime membership.