Do you know anyone who filed for “medical bankruptcy “?

It is hard to tell because a lot of bankruptcies stem from credit card debt. It is not uncommon for some of that credit card debt to include credit card charges for medical expenses.

More than half of my practice is bankruptcy. In my experience, I would say very few clients file PRIMARILY because of medical. Most clients at least have some medical debt in collections but it is usually the higher interest loan companies and the aggressive collectors who push people to bankruptcy. Some collection companies call/text or sue more than others. Most clients get annoyed to the point they finally file. A lot of medical debt doesn't try to collect very hard, at least where I am at.

I have filed a few younger people, say under 30, who had an accident or issue and racked up $100,000+ in debt because of no insurance. I have a filed a few of those primarily because of the medical just because there is no other way to deal with the large amounts - but that is nowhere near half of my filings.

I would guess the most common reasons are:
(1) Wage garnishment because of a judgment - usually from a small loan or deficiency after a repo'd vehicle. Here they can take 25% of your income. Once that starts, people want to file in a hurry.

(2) Chapter 13 to stop a foreclosure of their home

(3) Client tried to buy a vehicle and can't get a loan because of all the negative marks on their credit report so they want to clean it up

(4) Just annoyed by the nonstop phone calls and texts

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More than half of my practice is bankruptcy. In my experience, I would say very few clients file PRIMARILY because of medical. Most clients at least have some medical debt in collections but it is usually the higher interest loan companies and the aggressive collectors who push people to bankruptcy

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I don't do bankruptcy work, but I have noted that it is very different in Louisiana as it is in Texas. When you cannot garnish wages for most debt and the exemptions are huge, the collectors are less aggressive.

Your post was informative.

It has been accurate for 40 years while you bloodsuckers suck up every nickel you can from sick people. It used to be of u can cancer a bankruptcy would always follow as your insurance maxed out but if you survived the bills keep coming. That’s what surprises most people is that most of the medical bankruptcy people have insurance. Why does this surprise you? Medical care sucks up most of the money in our economy at such an increasing rate it’s not sustainable

My largest debts are all medical.
It's insane what insurance didn't cover like testing.
Our Healthcare is fricked here and no one really wants to do anything about it.

I had one bill that was $35,000 but when in offered to pay cash it dropped to $9k so I put it on a card.
They over bill.

I think the stat was that half of all bankruptcies INCLUDE medical debt. But that’s not that surprising since in a bankruptcy they put in all debts so if you have an outstanding lab bill for $20 it’s going in there.

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I think it was a convenient statistic for the left when they were pushing Medicare for All and Obamacare

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“Call it the stupidity of the American voter” I believe is what the ACA architect called it.

I didn't file bankruptcy but I lost a buttload of money, retirement accounts, destroyed my credit and still didn't pay everything in full from a 6 month stay in the hospital.

At a certain point it is better to stop trying to pay and let the bills go statute of limitations/fall off your credit report. I don't feel bad for some hospital "losing" $20k-$30k when they got paid hundreds of thousands of dollars and well, I had nothing.

Its really hard to lose income for over a year while racking up hospital bills and doctors bills. I am sure a certain small percentage of the population can handle that, but even though I thought I was well prepared... I could have handled a year without income... but not simultaneously racking up bills in the hospital.. but I guess I wasn't prepared enough.

youve never had a long term issue or real emergency

I know one person who did. Copperhead bit her when she was leaving her house for work. She was uninsured, and between several days in ICU and cost of antivenom, she owed over $180k.