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.
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