Medical Emergencies and Critical Illness Double Risk of Filing Bankruptcy

The American Bankruptcy Institute recently published a study analyzing the data of over 12,500 people. The study concluded that there is a strong link between medical insurance coverage lapses and consumer bankruptcies. In the study, it was found that people are twice as likely to file a bankruptcy if their health insurance had a lapse due to unemployment, non-payment, and divorce.

Research

Previous research estimated that two of three bankruptcies are spurred by medical issues. This could be caused by the combination of mounting medical bills and the loss of income during the illness. Colorado Cancer Center researchers surveyed 872 survivors ages 18 to 39. They found that 14.4% borrowed more than $10,000 for treatment.

More than 42% of the 9.5 million people diagnosed with cancer between 2000 and 2012 said they depleted their entire life’s assets in two years, according to an American Journal of Medicine study published last year.

For more information contact your Yuba City bankruptcy attorney at (530) 797-4402.