Reasons Behind Consumer Bankruptcy in the US Market
According to a 2022 study by the National Foundation for Credit Counseling (NFCC), the main reasons consumers file bankruptcy in the United States are:
- Overwhelming debt and financial difficulties due to medical bills, car repairs, and other expenses.
- Disputes with creditors over collection of debts such as credit card balances, loans, and mortgages.
- Loss of income due to job loss, layoffs, or reduced hours at work.
Factors Influencing Consumer Bankruptcy in the US
A 2020 report by the American Bankruptcy Institute (ABI) found that several factors influence consumer bankruptcy decisions in the US, including:
- Job loss and reduction in income.
- Medical debt and outstanding medical bills.
- Overspending and credit card debt.
- Mortgage defaults and foreclosures.