“It has often been said that a large portion of people that file bankruptcy are driven to file because of substantial medical bills. I think that Obamacare will reduce bankruptcy filings because it will cover medical care.”
I have heard that before many times but I have had very few clients that filed for that reason. The main reason is living a lifestyle one cannot afford, then one day they turn around and realize they have nothing but debt so they file bankruptcy. It may very well be a regional issue. Here in Westchester County New York, it is very expensive to live although cheap by Manhattan standards.
I think there is an attitude that people can have things, because they are entitled to them whether they can afford them or not.
I am not saying that people file bankruptcy with this attitude. They don’t. They are very embarrassed and ashamed. But that may come from the recognition on some level of the behavior they have lived with for years.
Of course, if we look at our government as an example and we are supposed to, it all makes sense. The Congress and President over the years have put this country over 14 trillion in debt. Interestingly, it was only one trillion when Ronald Regan became president. So much for supply side economics.
But, this is also a worldwide problem.
Food for thought.