What Is Medical Bankruptcy?

The reasons people file for bankruptcy are different between individual people. However, there are some important patterns to pay attention to that can help us understand why, on average, most people are filing bankruptcy.

In the 1980s, medical debt wasn’t cited by bankruptcy filers as a significant reason for declaring bankruptcy. Today, this has changed. According to new research published in the American Journal of Medicine, medical bills accounted for a staggering 62.1 percent of bankruptcy cases.

Factors At Play In Medical Bankruptcy Cases

The studies found that on average, people filing Medical bankruptcy due to medical debt were approximately two years older than other filers. They also had additional dependents, such as children or elderly parents to take care of. This suggests that elderly and chronically ill individuals require a greater degree of medical care, often resulting in excessive medical debt. People who are married or parents with children also contribute to the need for medical care, and for these families, one person falling ill can catapult medical debt to impossible heights.

Inadequate employment coupled with expensive medical bills also contributes heavily to the number of people filing bankruptcy due to crushing medical debt. Among the people who attributed unmanageable medical expenses as a reason for filing bankruptcy, they were 10% more likely to be struggling with unemployment themselves or with a partner who is unemployed.

This includes families who have a member who is in the military on active duty. The people in these households are less likely to have an education that would garner them employment with good health benefits, leaving working families with inadequate health coverage. Although members of the military, whether active duty or veteran, have access to healthcare benefits, their spouses and children may not have enough coverage.

Fighting Medical Bankruptcy

If you or your loved one is struggling financially due to pressing medical debt, you’re not alone. 55% of people who filed medical bankruptcy for medical reasons cited the cost of procedures or treatment as the primary issue. 42% of these individuals cited specific health problems being the reason for their bankruptcy, while 38% of people cited lost income as a result of their illness as a contributing factor.

At Sims Bankruptcy Law, PLLC, we can help you fight crushing medical debt that you couldn’t help but incur for critical treatment. Contact our Texas bankruptcy lawyers by dialing 469-751-7467 (Dallas-Fort Worth) or 254-304-7161 (Central Texas).