People generally have varied motives for declaring bankruptcy. Nevertheless, there are several key characteristics to look out for that might help us why the average person is filing for bankruptcy. Studies show that in the 80s, medical expenses were not listed by filers as a prominent factor for going into bankruptcy.

This is no longer the case. Overwhelming healthcare expenses contributed to a shocking 62.1 percent of bankruptcy filings, according to new data published by the American Journal of Medicine.

Why Medical Bankruptcies Are Filed

According to the aforementioned studies, individuals filing for bankruptcy as a result of unmanageable medical expenses were generally about two years older than others who filed. They were also responsible for dependents like their children or aging parents now in their care.

This data indicates that older and chronically ill people have a need for more medical treatment, which then contributes to unmanageable medical costs. Married people or families who have children also have the need for medical treatment beyond themselves, and for these households, one individual becoming ill can drive medical expenses to unfathomable proportions.

Insufficient employment, along with high medical fees, adds substantially to the number of people declaring bankruptcy primarily because of crippling medical costs. Bankruptcy filers who identified insurmountable medical costs as a factor in declaring bankruptcy were 10% more apt to be unemployed or have an unemployed immediate family member.

This also encompasses families with a person serving in the military on active duty or reserves. Individuals in these homes were found to have less than the necessary education to get jobs with adequate health insurance, leaving ordinary working people with insufficient medical coverage. Even though military service members can obtain access to healthcare services through the VA, their family members may not be afforded the same coverage.

Standing Up to Exorbitant Medical Fees

You are not alone if you or a family member is drowning in debt as a result of mounting health care expenses. The price of medicines or therapy was reported as a key concern by 55 percent of persons who declared bankruptcy for medical purposes. 42 percent of survey respondents said certain health conditions were the basis for filing bankruptcy, whereas 38 percent said they lost significant income from their condition and could no longer afford their financial obligations.

At Caplan Bankruptcy, we can help. Contact our office to speak with an experienced Florida bankruptcy lawyer now by dialing 407-872-6249.