Causes of bankruptcy?

Classically, the main thing blamed for personal bankruptcy has been incurring large uninsured medical expenses. This seems reasonable considering it frequently is accompanied by a loss (or at least major curtailment) of earning capability of either a single or couple, which makes paying impossible.

However, while affording an excuse for many, it may not be entirely correct. While medical issues are always unfortunate and unavoidable, they are certainly not really uncommon or unforeseeable or even unexpected over a workers lifetime. As such, there is an argument that failing to have provided for the contingency by sacrificing as needed to have insurance, (at least medical or disability), is an elective personal financial planning, or responsible planning, failure (in many cases, choosing to indulge in current pleasures and indulgences instead of electing to responsibly protect against uncertain risks), as much as anything. (Agreeably, the health care mess and limited resources of many people can mean there wasn't much of any real choice).

After specifying medical as a cause, likely the main other reason is simple poor financial judgement, compounded by unrestrained desire (or belief of a right) to live a lifestyle beyond ones means, and even pressed upon by society. Hand in hand with those, are the good number of people who, because of divorce, alcohol, drugs, depression, or other similar issues become either incapable of handling things or actually want to fail...albeit many of those could fall under a medically induced heading too.

You would want to file bankruptcy if you are overwhelmed by debt and harassed by creditors. If you are unable to pay your bills you may be eligible for relief under Chapter 7, Chapter 13, or Chapter 11 bankruptcy.