Cancer Survivors Dealing with Bankruptcy

One of the common misconceptions about consumer bankruptcy is that it is a tool used primarily by debtors who simply failed to properly manage their finances. Yet as a recent article in Reuters Health makes clear, many Americans—including Chicago residents—who are currently dealing with substantial debt are cancer survivors. Much of that debt is a result of the costly treatments they needed to beat the disease.
What else do you need to know about medical bills and personal bankruptcy?
Rapidly Increasing Cancer Care Costs
The Reuters Health article cites a recent study, which notes, “one-third of working-age cancer survivors go into debt, and 3% file for bankruptcy.” Why are so many cancer survivors dealing with nearly insurmountable debt? In short, the costs of cancer care in our country have increased rapidly in the last several years—“two to three times faster than other healthcare expenses,” according to the authors of the recent study. How much do cancer therapy drugs end up costing? On average, the monthly cost is right around $10,000, but the financial cost can be much higher, sometimes reaching $60,000 per month.
Based on survey data from 2012, the recent study examined more than 4,700 cancer survivors between the ages of 18 and 64. In other words, the researchers looked at survivors who are within an age group such that they likely are still below the common age of retirement. The study ultimately concluded that about 33% of those survivors (or just over 1,500 patients) had “gone into debt because of cancer.” Among those who did go into debt just to beat cancer, more than 50% ended up with medical debt of more than $10,000. Of those survivors, about 3% ended up seeking bankruptcy protection.
Age, Income, and Insurance Type as Risk Factors for Indebtedness
According to the article, the likelihood of going into debt as a result of cancer treatment is largely predictable based on three factors:
  • Younger age;
  • Lower income; and
  • Public health insurance.
Indeed, each of these categories increased the risk of indebtedness and bankruptcy after cancer treatment. Moreover, bankruptcy rates in general are “two times higher for people with a history of cancer than for others.” The financial burdens of cancer treatment are well-known to physicians, such as Dr. Yousuf Zafar at Duke Cancer Center. Dr. Zafar responded to the study’s findings by underscoring their veracity.
Where do most of these high costs come into play? In most cases, for patients who receive treatment outside of a hospital, the highest costs are those of the drugs (e.g., chemotherapy drugs). But depending on the individual patient’s situation, medical bills for hospitalizations, surgeries, and other fees can also add up quickly. And even when patients do not end up with enormous medical bills after treatment is finished, it is often because their family members have taken extra jobs or have sought out other forms of income to help limit debt, according to Dr. Zafar.
Filing for bankruptcy is a complicated process. If you have questions or concerns about managing debt and thinking through your options, an experienced Oak Park bankruptcy attorney can speak with you today. Contact the Emerson Law Firm to learn more about our services.

See Related Blog Posts:
Preventing Debt Collection Harassment in the New Year

Comments

Post a Comment

Popular posts from this blog

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti
Read more

Learning About Different Types of Wills

Whether you are young or old, single or married, wealthy or with limited financial means, healthy or dealing with a medical condition, it is important to make a will. Many people have incorrectly heard that wills are only necessary for particular people, such as those with a substantial amount of assets or for older adults in poor health. Yet wills are critical for adults of all ages, and an experienced Oak Park estate planning lawyer can help you to make one. Before you begin working with a lawyer on a will, you might start conducting your own research into wills in Illinois and the requirements for a valid will. In so doing, you are likely to come across information about many different types of wills, and you are probably going to wonder whether you will need more than one kind of will. In short, there are different terms that can be used to describe the form or function of a will, as well as some distinct types of wills. Our Oak Park estate planning attorneys can explain in more
Read more

Younger Parents Need an Estate Plan

It is critical for younger parents to have an estate plan, even if they know they are healthy and do not anticipate that anything will happen in the near future. Much too often, younger parents assume that they can wait until they are older to consider estate planning or until there is a health-related reason to begin the estate planning process. Yet estate planning is critically important for parents who have minor children. While estate planning is important for adults of all ages, it can allow parents to make important decisions about who will care for their children in the event that they become unable to do so themselves. Our Oak Park estate planning lawyers can explain in more detail. Naming a Guardian for Your Minor Children in Your Will Most importantly for younger parents, making a will allows you to name a guardian who can care for your child in the event of your unexpected death. Nobody anticipates a deadly accident or a sudden situation in which there is a need for another
Read more