The U.S. has seen a 13% increase in bankruptcy filings in the year ending September 2023, with business bankruptcies spiking by 30%. Forbes Advisor's analysis of U.S. Courts data indicates that Mississippi and Tennessee lead the nation in per capita bankruptcies, while Southern states are disproportionately affected. Conversely, Vermont and South Dakota have the fewest filings. High poverty rates and consumer debt contribute to these bankruptcies, while medical debts and lack of budgeting are also significant factors. The article provides tips to avoid bankruptcy, such as avoiding consumer debt, negotiating medical debts, budgeting, boosting income, and consulting with credit counseling agencies. It also discusses when bankruptcy might be the necessary option and various savings products that can help avert financial crisis.
Read the full article here.