U.S. bankruptcies are down significantly since their all-time 2005 high when more than two million Americans filed for financial reorganization. While less than 500,000 Americans filed for bankruptcy in 2022, monthly 2023 filings demonstrate a marked year-over-year increase over 2022.
The first things Tallahassee-area residents considering bankruptcy should know is that they are not alone and there is no reason to feel shame. More than one million Americans file for bankruptcy every year, and that majority of bankruptcies are due to financial hardship rather than reckless spending. Outstanding medical expenses have long been a leading cause of the nation’s personal bankruptcies. Other causes include job loss, unaffordable mortgages/foreclosure, and divorce. And, yes, living beyond one’s needs or accumulating too much debt also leads some people into bankruptcy.