I’m getting close to twenty years practicing law, which includes bankruptcy law, and I always would advise people that medical bills are more than half the reason why bankruptcies are filed, however, a new suggests otherwise.
According to the New England Journal of Medicine, only about four percent of hospitalizations conclude with bankruptcy filings. However, the counterpoint to that is that injuries, hospital stays, etc… triggers using personal credit cards to make ends meet and thus, it may not be tied solely into medical bills, but the consequences of it.
Prior studies, as done by Senator Elizabeth Warren, looked at how many bankruptcies included medical bills, which was around sixty percent, but that doesn’t mean the hospital bills resulted in the bankruptcy.
Personally, I can speak of experience, there are medical bills in an overwhelming majority of bankruptcies, but not necessarily the cause. I would argue the high cost of living in certain metropolitan cities like Miami is more likely the result.
Alexander Hernandez, Esq.
Alexander is a bankruptcy attorney practicing in Jacksonville and the surrounding areas and Miami, Florida.
Miami and stagnant wages are more likely the reason.