Medical Illness Causes a Bankruptcy Every 15 Seconds

According to one research study, illness and medical bills were linked to at least 62.1% of all personal bankruptcies in 2007. Based on 2010 bankruptcy statistics, medical illnesses was responsible for 940,000 bankruptcies which involved over 2.547 million Americans. That comes out to about one person in every 15 seconds.

The study showed most medically bankrupt families were middle class before they suffered financial setbacks; 60.3 percent of them had attended college; 66.4 percent had owned a home; 20 percent of the families included a military veteran or active-duty soldier; 78 percent of the individuals whose illness led to bankruptcy had health insurance at the onset of the bankrupting illness; 60 percent had private insurance; 69 percent of the families had coverage at the time of their bankruptcy filing; and only 60 percent of families had continuous coverage. This research study was completed by the Physicians for a National Healthcare Program (PNHP) when they were lobbying Congress to pass the current national healthcare plan.

Opponents of the new national healthcare plan, the “Tea Party” Republicans, are now attempting to reverse many of the changes made by Obama’s healthcare plan, citing the inability of the Federal Government to sustain its already overloaded debt burden. Proponents of the plan claim that individuals have the right to insurance coverage.

Clearly, changes need to be made to help make insurance coverage affordable for all Americans. Right now there are an astounding number of Americans who are unable to care for themselves, many of them homeless.

Consider statistics for the homeless presented by the PNHP:

    1. Number of Homeless Persons in U.S. Annually: 3.5 million.

    2. Number of Homeless Persons in U.S. Nightly: 842,000.

    3. About 15 million of us experience homelessness at least once in our lifetime.

    4. 39% of the homeless are under the age 18: 1.35 million children per year and 200,000 on any given night.

    5. 23% of all homeless people were members of families with children

    6. 400,000 veterans are homeless per year, 200,000 on any given night.

    7. The role of mental illness and substance use is less than you may assume: Approximately 16% of the single adult homeless population suffers from some form of severe and persistent mental illness; 30% currently addicted to alcohol or drugs. The bigger part of the problem is stagnant income and less affordable housing. The main cure for homelessness is affordable homes. 9 million low-income renter households nationwide pay more than half of their income for housing.

Homeless individuals represent a growing segment of our population, and they are not able to supply their basic needs. Bankruptcy induced by medical illness, according to the statistics provided by the PNHP, might be considered the leading cause of homelessness in America.

Filing for bankruptcy will not save everyone from becoming homeless, but it can help some debtors start over. Bankruptcy laws can be complicated. If you are considering bankruptcy, contact a bankruptcy lawyer.

If you need relief from the stress of debt and you live in or around the metropolitan area of Kansas City, Missouri and Kansas, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

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