Bankruptcy is a hard time for anyone who has to go through it. For those with medical bills, encroaching financial troubles are an everyday concern.
In fact, is it reported that one of the main reasons why people file for Chapter 7 bankruptcy is because of medical bills. In this infographic, you’ll see exactly how many Americans are afflicted by debt from their medical expenses.
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Reasons for Declaring Medical Bankruptcy
- Illness and medical bills accounted for 62.1% of all bankruptcies in 2007.
- 40.3% of debtors suffered income loss as a result of an illness.
Reasons for Declaring Bankruptcy
|Medical Bills||Medical Problems of Self or Spouse|
- 40% of medical bill debtors had a lapse in insurance coverage sometime in the 2 years prior to filing, whereas less than 25% of debtors were actually uninsured when they ﬁled for bankruptcy.
- While 76% of households owe on medical bills, 47% have credit card debt as a result of medical expenses.
- Of those who do not owe medical bills on a credit card, the average debt is $6,476.
- Around 51% of families have attempted to reduce medical bills by:
- Refusing or delaying a prescription refill - 33%
- Skipping out on a medical test, follow up, or treatment - 36%
- Not going to a doctor for a medical issue - 39%
Declaring Chapter 7
If you declare Chapter 7, you probably have problems with an unsecured debt, such as medical bills or credit cards.
You’re not alone.
Percent of Unemployed Debtors Falling Behind on Payments by Age
|18 to 29||30 to 49||50 to 64||65 or older|
Top Five States for Bankruptcies Per Capita in 2012
|% of Bankruptcies that were Chapter 7||52%||81%||53%||65%||44%|
|Filings Per 1,000 people||7.19||7.00||6.65||5.87||5.87|
- In 2011, over 1 million people filed for Chapter 7 bankruptcy.
- Debtors filing Chapter 7 owed well over $348 million to unsecured creditors in 2011.
- The average person owed $11,079 in unsecured funds.
Medical bills can add up quickly, especially if someone has continuous health problems that require constant treatment. If you are falling behind on your medical financial obligations, remember that you are not alone and there are many people struggling with this ongoing problem.