Medical bills account for 40% of bankruptcies (2024)

Exorbitant medical bills in the United States play a huge part in personal bankruptcies, accounting for about 40% of the filings last year, according to a new study.

About 500000 Americans filed for bankruptcy protection in 1999 largely because of heavy medical expenses, according to the study, which is to be published next month in a finance journal, Norton's Bankruptcy Adviser.

“Very little attention has been paid to the number of people who are in bankruptcy because of serious medical problems,” said the study's lead author, Harvard law professor Elizabeth Warren. “It's a reminder that many of the families in bankruptcy have been pressed to the edge by expenses stemming from illness or injury.”

Professor Warren and colleagues found that elderly people and women, as well as families headed by single women, were the groups in bankruptcy that were hardest hit by medical expenses. The findings illustrate how fragile middle class status is for many American families, Professor Warren said. These families are “just one serious illness away from financial collapse,” she said. “What a scary way to think about America.”

Professor Warren and her colleagues, Teresa Sullivan, dean of graduate studies at the University of Texas, and lawyer Melissa Jacoby, surveyed people who filed for bankruptcy in 1999 in eight judicial circuits nationwide, accounting for about 18% of all filers.

If the results are projected nationwide, 326441 bankruptcies last year were related to an illness or injury to the filer or a family member, and 267575 other filers had substantial medical bills though they also listed other reasons—or gave no reason—for their bankruptcies. In addition to serious illness or injury, experts have also cited job loss or divorce as frequent causes of bankruptcy.

The study comes at a time when legislation making it harder for people to sweep away credit card and other debts through bankruptcy is before Congress. The pending legislation seeks to apply new standards for determining whether people filing for bankruptcy should be forced to repay their debts under a reorganisation plan approved by the courts instead of having them dissolved.

The new study on medical bills and bankruptcy “will become a factor in the debate” over the legislation, said Frank Torres, legislative counsel for the Consumers Union, a consumer advocacy group. “Now it's up to Congress whether or not they'll pay attention to it.”

Credit card issuers contend that current bankruptcy law makes it too easy for debtors to walk away from their obligations, even if they could in fact repay a substantial portion of their debt. Issuers are pressing Congress to tighten the requirements for bankruptcy by making it harder to file for bankruptcy protections, which wipe out most debts.

Warren said that the implications of her findings are that if such families are denied the ability to wipe out debts in bankruptcy, some will lose their homes and “many of these people will face collection for the rest of their lives.”

Medical bills account for 40% of bankruptcies (2024)
Top Articles
What are some alternatives to PHP-FPM? - StackShare
6 Best Brokers for Penny Stock Trading of September 2024 - NerdWallet
11 beste sites voor Word-labelsjablonen (2024) [GRATIS]
Evil Dead Movies In Order & Timeline
Lowe's Garden Fence Roll
Netr Aerial Viewer
Hannaford Weekly Flyer Manchester Nh
855-392-7812
Kokichi's Day At The Zoo
Autobell Car Wash Hickory Reviews
Aces Fmc Charting
Think Of As Similar Crossword
Gameday Red Sox
Waive Upgrade Fee
Jesus Revolution Showtimes Near Chisholm Trail 8
B67 Bus Time
Olivia Ponton On Pride, Her Collection With AE & Accidentally Coming Out On TikTok
Audrey Boustani Age
zopiclon | Apotheek.nl
Samsung Galaxy S24 Ultra Negru dual-sim, 256 GB, 12 GB RAM - Telefon mobil la pret avantajos - Abonament - In rate | Digi Romania S.A.
All Obituaries | Buie's Funeral Home | Raeford NC funeral home and cremation
Silive Obituary
Leccion 4 Lesson Test
Conan Exiles Sorcery Guide – How To Learn, Cast & Unlock Spells
Glover Park Community Garden
Mybiglots Net Associates
Does Hunter Schafer Have A Dick
15 Primewire Alternatives for Viewing Free Streams (2024)
Sorrento Gourmet Pizza Goshen Photos
Inter Miami Vs Fc Dallas Total Sportek
Cfv Mychart
Xxn Abbreviation List 2023
Vivification Harry Potter
Tottenham Blog Aggregator
Ghid depunere declarație unică
آدرس جدید بند موویز
D3 Boards
Can You Buy Pedialyte On Food Stamps
20 Best Things to Do in Thousand Oaks, CA - Travel Lens
Dmitri Wartranslated
Mugshots Journal Star
Locate phone number
Joey Gentile Lpsg
60 Days From May 31
'The Nun II' Ending Explained: Does the Immortal Valak Die This Time?
Flappy Bird Cool Math Games
White County
Copd Active Learning Template
Dietary Extras Given Crossword Clue
Smoke From Street Outlaws Net Worth
Billings City Landfill Hours
Latest Posts
Article information

Author: Nathanial Hackett

Last Updated:

Views: 5951

Rating: 4.1 / 5 (52 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Nathanial Hackett

Birthday: 1997-10-09

Address: Apt. 935 264 Abshire Canyon, South Nerissachester, NM 01800

Phone: +9752624861224

Job: Forward Technology Assistant

Hobby: Listening to music, Shopping, Vacation, Baton twirling, Flower arranging, Blacksmithing, Do it yourself

Introduction: My name is Nathanial Hackett, I am a lovely, curious, smiling, lively, thoughtful, courageous, lively person who loves writing and wants to share my knowledge and understanding with you.