Hundreds of thousands of Bankruptcies are filed each and every year. Many of these Bankruptcies are personal Bankruptcy cases that are filed to stop foreclosures, while others are filed due to medical debts, job loss, and simple inability to afford monthly payments for debts. However, the most common reasons for Bankruptcies are as follows:
First, the majority of recent Bankruptcy filings were filed to get rid of debt collectors and debt purchasers.
Second, many Bankruptcy filings are filed to eliminate credit card debt.
Finally, another common reason for Bankruptcy filings is lawsuits and garnishments.