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The 1990s were a period of great prosperity in the United States and yet, paradoxically, personal bankruptcies rose sharply during this time period. This study analyses data from questionnaires completed by bankrupt debtors to learn the reasons for their bankruptcies. Job problems were the leading cause of bankruptcy, but divorce, medical debts, housing problems, and credit cards were also important causes. The debtors were typically middle class, with somewhat higher education that the population generally. The implication of the study is that a large number of Americans may be in precarious financial circumstances because of high debt levels. In the absence of a strong social welfare system, bankruptcy functions in the United States as a part of the social safety net. Brief comparisons are made to changes in bankruptcy in Europe and Canada.