Reconsidering Medical Bankruptcy and Bernie Sanders’ Plan
The topic of consumer bankruptcy is a significant one for a number of the Democratic presidential candidates, including Elizabeth Warren and Bernie Sanders. Personal bankruptcy can allow debtors in Oak Park and across the U.S. to get a fresh start when they are struggling with a massive amount of consumer debt or can allow a struggling homeowner to prevent foreclosure with Chapter 13 bankruptcy. However, many of the Democratic presidential candidates contend that consumers should not even be grappling with much of this debt in the first place—especially medical debt. According to a recent article in Market Watch, Sen. Bernie Sanders has been focusing on medical debt and consumer bankruptcy, and the need to reconfigure the American healthcare system so that consumers are not considering bankruptcy solely as a result of medical debt.
What do you need to know about consumer bankruptcy and medical debt? We will tell you a bit more about how Bernie Sanders and other Democratic hopefuls are focusing on the topic of personal bankruptcy, and then to say more about it in relation to medical debt in the U.S.
Bernie Sanders Targets Medical Debt and the Need for Healthcare Changes
As the article explains, in the weeks surrounding the Democratic primaries, Sanders has been emphasizing the shockingly high number of Americans who file for Chapter 7 bankruptcy as a result of medical debt. The article cites some of Sanders’ lines that Americans have been hearing in political events across the U.S.: “You’ve got 500,000 people going bankrupt because they cannot pay their medical bills . . . . We’re spending twice as much per capita on health care as do the people of any other country.”
Sanders has been focusing in part on medical debt and bankruptcy in order to emphasize the need for a different kind of healthcare system. As Sanders argues, “now is the time to take on the greed and corruption of the healthcare industry, of the drug companies, and finally provide health care to all through a Medicare-for-All single-payer program.” As Americans read about consumer debt and attend political rallies, they may be wondering: are half a million people actually filing for bankruptcy as a result of medical debt?
Sanders’ Figures Might be a Bit Off, But Many Consumers do File for Bankruptcy Because of Medical Debt
The article cites a Washington Post report that suggests “Sanders’ assertion that 500,000 people have gone bankrupt because of medical bills does not fully comport with the research his campaign has cited as the basis of this claim.” Yet many people do in fact file for bankruptcy due to medical debt. The Sanders campaign cites data from the Consumer Bankruptcy Project, which did find that, between 2013 and 2016, “medical issues contributed to 65.5% of bankruptcies.” That figure takes into account the cost of medical bills as well as lost wages as a result of illness and treatment.
That research surveyed more than 900 consumers in the U.S. who had recently filed for bankruptcy. If we take the percentage of those surveyed and apply it to the entire population of people who filed for bankruptcy during that period, then the data would suggest that about 530,000 consumer bankruptcies occurred, at least in part, as a result of medical debt. Yet other studies suggest that the percentage of Americans who file for bankruptcy due to medical debt is lower, and that other factors play significant roles, including the type of health insurance and savings prior to a medical event.
Contact a Bankruptcy Lawyer in Oak Park
The bottom line is that medical debt can affect a debtor’s decision to file for bankruptcy, but the total number of consumers who file for bankruptcy as a result of medical debt is not exactly clear. If you are struggling with debt and have questions about filing for bankruptcy, an Oak Park bankruptcy lawyer can help. Contact the Emerson Law Firm for more information.
See Related Blog Posts:
How Race Affects Consumer Debt and Bankruptcy
Do I Need to Tell My Creditors When I File for Bankruptcy?
What do you need to know about consumer bankruptcy and medical debt? We will tell you a bit more about how Bernie Sanders and other Democratic hopefuls are focusing on the topic of personal bankruptcy, and then to say more about it in relation to medical debt in the U.S.
Bernie Sanders Targets Medical Debt and the Need for Healthcare Changes
As the article explains, in the weeks surrounding the Democratic primaries, Sanders has been emphasizing the shockingly high number of Americans who file for Chapter 7 bankruptcy as a result of medical debt. The article cites some of Sanders’ lines that Americans have been hearing in political events across the U.S.: “You’ve got 500,000 people going bankrupt because they cannot pay their medical bills . . . . We’re spending twice as much per capita on health care as do the people of any other country.”
Sanders has been focusing in part on medical debt and bankruptcy in order to emphasize the need for a different kind of healthcare system. As Sanders argues, “now is the time to take on the greed and corruption of the healthcare industry, of the drug companies, and finally provide health care to all through a Medicare-for-All single-payer program.” As Americans read about consumer debt and attend political rallies, they may be wondering: are half a million people actually filing for bankruptcy as a result of medical debt?
Sanders’ Figures Might be a Bit Off, But Many Consumers do File for Bankruptcy Because of Medical Debt
The article cites a Washington Post report that suggests “Sanders’ assertion that 500,000 people have gone bankrupt because of medical bills does not fully comport with the research his campaign has cited as the basis of this claim.” Yet many people do in fact file for bankruptcy due to medical debt. The Sanders campaign cites data from the Consumer Bankruptcy Project, which did find that, between 2013 and 2016, “medical issues contributed to 65.5% of bankruptcies.” That figure takes into account the cost of medical bills as well as lost wages as a result of illness and treatment.
That research surveyed more than 900 consumers in the U.S. who had recently filed for bankruptcy. If we take the percentage of those surveyed and apply it to the entire population of people who filed for bankruptcy during that period, then the data would suggest that about 530,000 consumer bankruptcies occurred, at least in part, as a result of medical debt. Yet other studies suggest that the percentage of Americans who file for bankruptcy due to medical debt is lower, and that other factors play significant roles, including the type of health insurance and savings prior to a medical event.
Contact a Bankruptcy Lawyer in Oak Park
The bottom line is that medical debt can affect a debtor’s decision to file for bankruptcy, but the total number of consumers who file for bankruptcy as a result of medical debt is not exactly clear. If you are struggling with debt and have questions about filing for bankruptcy, an Oak Park bankruptcy lawyer can help. Contact the Emerson Law Firm for more information.
See Related Blog Posts:
How Race Affects Consumer Debt and Bankruptcy
Do I Need to Tell My Creditors When I File for Bankruptcy?
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