Key Takeaways

• Personal hardships such as divorce, unemployment, and medical or mental health challenges can severely disrupt financial stability.
• Divorce and job loss are among the top causes of bankruptcy due to legal costs, lost income, and mounting expenses.
• Mental health and financial health are deeply interconnected, often creating a cycle of stress and instability.
• Bankruptcy options like Chapter 7 and Chapter 13 offer different paths to debt relief, each with long-term consequences.
• Early planning, emergency savings, and professional guidance can help individuals build financial resilience.