Seniors Still Filing for Bankruptcy Due to Medical Debt

While some reports suggest that consumer bankruptcy rates are falling in Oak Park and throughout the U.S., there are certain populations that may be struggling with debt at higher rates than others. More precisely, according to a recent article in Forbes Magazine, older Americans continue to file for bankruptcy at particularly high rates due to insurmountable medical bills. Many seniors who have already filed for Chapter 7 bankruptcy have described it as a “godsend,” emphasizing that they would not have been able to survive if they had not made the decision to file for bankruptcy in order to deal with hospital bills and surgery costs that were out of reach.
Why do older Americans have higher medical debt than individuals in other age groups?
If you are or an elderly loved one with substantial medical debt are thinking about filing for personal bankruptcy, what else do you need to know?
Seniors Experience Serious Medical Conditions Requiring Costly Surgeries at Significantly Higher Rates Than Younger People
Americans of all ages are currently facing medical debt, and many of those Americans regardless of age may consider filing for consumer bankruptcy in order to get a fresh start. At the same time, seniors tend to have more medical debt than others. One of the major reasons that elderly debtors have higher rates of medical debt is that they often require costly emergency surgeries and other hospital treatments at rates significantly higher than for younger age groups. Indeed, as a report from AARP notes, hospital visits increase in frequency and severity as we age. The following are among the most common reasons that older adults end up in the hospital, facing staggering medical debt:
  • Cardiac arrhythmias, which are heartbeat irregularities that frequently lead to stroke and cardiac arrest (about 543,000 adults over the age of 65 are hospitalized for this reason each year);
  • Congestive heart failure, which leads to more than 750,000 hospitalizations of older adults each year and often requires surgical intervention;
  • Infections, from pneumonia to urinary tract infections, which frequently lead to lengthy (and thus costly) hospital stays;
  • Coronary atherosclerosis, or a “blockage of blood flow to the heart” which frequently requires surgery and a substantial hospital stay; and
  • Stroke, for which nearly 900,000 seniors are hospitalized each year.
As you can see, the most common reasons for older adults to be hospitalized are emergency situations that result in long and expensive hospital stays, and often require expensive surgeries. Given these facts, it is not entirely surprising that so many elderly Americans have overwhelming medical debt.
Bankruptcy can Help Seniors Who are Dealing with Medical Debt
As the Forbes article underscores, many seniors who are struggling with medical debt were people who always paid bills on time and worked diligently to avoid having consumer debt. However, medical debt remains the leading cause of bankruptcy throughout the country, and seniors account for about 8% of all filers. To put that number in perspective, the rate of seniors filing for personal bankruptcy due to medical debt has risen since 2008, while other consumer bankruptcy rates largely have declined.
While many seniors have said they felt guilty about the thought of filing for bankruptcy prior to doing so, a large majority of those seniors who end up filing experience one primary emotion - relief.
To learn more about the benefits of filing for bankruptcy is you are over the age of 65, you should speak with an Oak Park bankruptcy lawyer about your situation. Contact the Emerson Law Firm to learn more about how we can help you.
See Related Blog Posts:

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