The most common reasons for filing bankruptcy are:
- Unemployment: Large medical expenses; Seriously overextended credit; Marital problems, and;
- Other large unexpected expenses.
A Harvard Study reported that half of US bankruptcies were caused by medical Bills (MSNBC). The study was published online in February of 2005 by Health Affairs. The Harvard study concluded that illness and medical bills caused half (50.4 percent) of the 1,458,000 personal bankruptcies in 2001. The study estimates that medical bankruptcies affect about 2 million Americans annually Ñ counting debtors and their dependents, including about 700,000 children.