medical bankruptcies in the US

[editec]

Consumer debt is consistent
with bankruptcy filings
Research by the Federal Reserve indicates that household debt is at a record high relative to disposable income. Some analysts are concerned that this unprecedented level of debt might pose a risk to the financial health of American households. A high level of indebtedness among households could lead to increased household delinquencies and bankruptcies, which could threaten the health of lenders if loan losses are greater than anticipated. (click on the image to view a larger version)


September 2, 2009, Alexandria, Va.— The 119,874 consumer bankruptcy filings in August represented a 24 percent increase over last year’s monthly total, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). Although an increase over the previous year, the August 2009 consumer filings represented a 5 percent decrease from the July 2009 total of 126,434. Chapter 13 filings constituted 28.3 percent of all consumer cases in August, unchanged from the July rate.

"Consumers are continuing to turn to bankruptcy as a shield from the sustained financial pressures of today’s economy," said ABI Executive Director Samuel J. Gerdano. "As a result, we expect consumer filings to top 1.4 million this year."

While Medical Bills are a factor in Bankrupty filings, I find it somewhat interesting that the bulk of Bankruptcy filings due to credit card debt, mortgage defaults, divorce, etc. are totally ignored.

I also find it somwhat interesting that according to the data presented which is vague at best when you actually read the Harvard Study which by the way was authored by Dr. Steffie Woolhandler and surprise , just happens to be an advocate for "single payer". "Covering the uninsured isn't enough," she said. "Reform also needs to help families who already have insurance by upgrading their coverage and assuring that they never lose it." One aspect of the study cited a vague 2007 study of 29% of credit card debit that could not be measured by people who used it to pay medical bills. In fact at the time of this study there were over 1 million filings in the United States and the survey itself was performed on small data set of 2314 people. While I believe that medical bills are a contributing factor to bankruptcy, it does tend to negate the fact that many Americans have over indulged themselves in the last 10 years and thus find themselves in bankruptcy court. The other comment I have here is, bankruptcy is a good thing people, not a bad thing, it allows people a chance to start over, and perhaps, learn from the mistakes of the past. Sadly, it's not a road that many American businesses were allowed to travel prior to congress taking your tax dollars to prop them up. So if your outraged over the bankruptcy filings due to medical expenses then you should be equally outraged that congress would choose to prop up a company rather than let them travel the same path that these poor individuals did.

Yeah, I see the right wingers' myth that the statistical rise in defaults by credit card users is still being blamed on the individuals.

Odd, don't you think, that the same people who a decade ago were good conscioness debtors who didn't spend too much are suddenly fools too stupid to pay their bills, isn't it?

You don't suppose, do you, that the statistically significant rise in defaults ad bankruptsies might be explaied by rising medical costs, and outrageous laws giving CCC's the right to change the terms of the debts?

Of course some of you cannot understand that while certainly SOME people are their own worst enemies, a statistically significant rise in those numbers indicate a change in the economic circumstances overall.

That's just too difficult for SOME of you to get, isn't it?

Let me TRY to explain the logic behind my theory.

While the average for defaults in revolving credit was normally 1-2% I would COMPLETELY agree with you that those people were fools.

But when, it a short period of time (say in the last ten years) we see those defaults rise to 5-10%, then what you'd have to believe, in order to blame the idividuals entirely for this change, is that suddenly ad inexplicably, the American people got a WHOLE LOT STUPIDER than they were ten years ago.

Now honestly, do you really think THAT makes sense?

Or, does it make more logical sense that the changes in cicumstances that most Ameircans are facing are causing these hgher rates of bakruptsy and defaulting revolving credit lines?

You have to be purposefully BLIND TO THE FACTS to think that the average home economics intelligence of the POPULATION AS A WHOLE has changed in the last decade.

 

[Navy1960]

While your logic seems slanted to enforce the cause your believe in and thats fine I appreciate that can understand that to some degree that medical expenses are a contributing factor to bankruptcy. However, what you neglected in yours look at this is the indivuduals responsibility for engaging in poor financial behavior. While I have some sympathy for people that were tricked into thinking that the mortgage they signed or the credit card they got would always be the rate they first signed up for in the end it is the individual to read and UNDERSTAND what they are commiting too. It is a little thing called personal responsibility. For example, back when you had people who were qualifying for loans on homes 200K and above who's income level was 25k and then getting seconds to pay credit card debit, what do you think the end result of that would be? To simply say that most Americans file for bankruptcy based on a study from Harvard , using sampling data from 4 states and 2k individuals and from someone who has stated their position on "single payer" what do you think they results would be? Have you noticed that there was a mortage issue recently that perhaps might have had something to do with the recent number of bank failures due to defaults? See what I mean? , It's rather a stretch to just up and make the claim that Individual bankruptcy in the United States is caused mostly by Medical Bills based on a study that has been floating around since 2005 and then redone in 2007.

While there is a need for healthcare reform, and while there is also a number of Americans that do file for healthcare reason(s). The logic thats applied based on this study is a stretch at best and serves to detract from the real issues here and thats the need for healthcare reform and an even bigger need for the economic sitution to be addressed in such a manner that Americans can go back to work. Before, all of you who run to the blame Bush position as some always do, consider this, because Bush did it, does not serve as an excuse to do it more.