Personal bankruptcies have fallen by a whopping 50 percent. Less and less Americans are filing for bankruptcy, with half as many people filing for bankruptcy in 2017 compared to 2010. What’s the reason? Many experts are pointing to the Affordable Care Act (ACA), which has helped numerous Americans obtain health insurance who didn’t have insurance before.
The cost of medical care has skyrocketed since the 1980s when it first started to rise at an alarming rate. The increase in the price of medical care caused numerous and unaffordable expenses for Americans who didn’t have insurance. It also caused unaffordable expenses for Americans who had inadequate insurance. This, in turn, led to a lot of personal bankruptcy filings, which seemed to go hand in hand with the increase.
Researchers don’t assume that the ACA caused the entire 50 percent decline in bankruptcy filings; however, researchers do believe that anywhere from 10 to 50 percent of the decrease was caused by the ACA. As for, the rest of the decrease, it might be due to the fact that the U.S. economy has been steadily and slowly recovering from the Great Recession over the last few years and more Americans have jobs and are feeling more financially stable.
That said, many Americans are still struggling financially, even though the effects of the Great Recession have largely passed. Furthermore, many of these individuals can benefit from the bankruptcy process. If you’re underwater with medical debt, hope may exist for you yet. You may be able to file for Chapter 7 bankruptcy and resolve the medical debts that currently haunt you.
Source: qz.com, “Personal bankruptcies are down 50% in the US. Thanks, Obamacare?,” Michael J. Coren and Christopher Groskopf, accessed Dec. 01, 2017