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Bankruptcy And Medical Bills | Missouri Bankruptcy Lawyer

There is an unfortunately stigma surrounding bankruptcy that assumes that those petitioning for bankruptcy are irresponsible with money or taking advantage of the syste. However, only a minority of cases involve those who spend more than they should or make poor financial decisions. The number one leading cause of bankruptcy is health issues and medical bills. And many of those who declare bankruptcy after a medical emergency or diagnosis have health care.

The American Journal of Medicine released a shocking study in August that found the number of people filing for bankruptcy in the United States for medical reasons has increased by almost percent in the last six year – from 46 percent to 62 percent. The people who had to file for bankruptcy for medical reasons were not just poor, lower class families without health care or without sufficient health care – the study found that many of the bankruptcy filers were from middle and upper middle class families with health care coverage. Many of these families had good financial histories, owned homes, and had college educations.

Health problems can cause multiple types of financial strain. The study found that those with medical problems can prevent people from working, lead to second mortgages, and, of course, medical bill debt.

On the other hand, researchers stressed that it is difficult to know whether medical issues were the direct cause of the bankruptcy filings, or if they are simply the straw that breaks the camel’s back. In some cases, those who file bankruptcy also have other debts and may be living paycheck to paycheck at the time of their disease, condition, or accident.

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