Who Files For Bankruptcy? Is One Segment of the Population More Likely to File than Others?
Interviewer: What kind of people file for bankruptcy protection? Is there any particular type of person, gender, age that files for bankruptcy protection?
John Reade: It seems to cut across all socio/economic, and other backgrounds. However, I see people file for bankruptcy who have extensive medical debt, and/or extensive credit card debt. I also see people file for bankruptcy who have lost jobs, or their income has decreased drastically due to a cut-back or having to obtain a job in a new geographic area or occupation. It can happen to anyone.
What Are the Primary Reasons for Filing for Bankruptcy?
Interviewer: What are some major reasons people decide to file for bankruptcy?
Extensive Medical Debt and Credit Card Debt Are Attributed to Filing For Bankruptcy Protection
John Reade: Someone may file for bankruptcy if they have medical debts, or the person has credit card debts that they can no longer pay, and still pay for their own necessities. Someone may also file for bankruptcy if they have experienced a loss of income due to becoming unemployed, or because, they now have a lower-paying job. There are instances when a bankruptcy is attributable to simply moving from a location where a person is paid more—like California, for example—and they move to southern Oregon and get a job where they are paid less. Sometimes, for example, a person with a certain job was able to pay their debts, or keep their head above water, but after they moved, or got a lower paying job, they simply were no longer able to pay their debts or keep their head above water.