Category Archives: Bankruptcy

The Affordable Care Act was among the likely factors that assisted with a big decrease nearly 50% in personal bankruptcy filings in the last six years, according to a Consumer Reports analysis.

Other factors, including new bankruptcy laws, a rebounding economy and tighter credit requirements, also likely helped with the reduction, with filings dropping from 1.54 million in 2010 to 770,846 last year.

Theres no way to know what made the biggest difference in that drop, since those filing for personal bankruptcy dont state a specific reason for it.

Personal bankruptcies actually began to decrease before the ACA, also called Obamacare, began to be implemented, though some parts including expanding family health plans to young adults started in 2010.

Read: This expensive risk lurks in nearly every medical experience you have

Still, the health care law in all likelihood played a major role. The ACA reduced uninsured rates to historic lows, with a major portion of that expanded insurance coverage for low-income Americans.

See: Forget iPhones many Americans cant pay a $100 medical bill

The laws consumer protections include health insurance for those with pre-existing conditions, reduced premiums for older people and an end to health insurers capping annual or lifetime benefits.

The ACA also subsidized individual health plans for many low and middle-income individuals. Richard Gaudreau, a consumer bankruptcy lawyer in New Hampshire, says he sees far fewer clients who dont have health insurance now.

I think before the ACA there were a lot of medically-driven costs in personal bankruptcies, he said. I think that has changed... I can only think of one in the past few years that was true of.

Related: With Obamacare repealed, 1 in 4 adults could be uninsurable due to a pre-existing condition

Related: Birth control pills are the rare prescription drug thats actually become cheaper

Medical bills, which are famously costly and unpredictable, have been historically estimated as the leading cause of bankruptcy filings. Other reasons include a lost job, reduced income and divorce, Gaudreau said.

A 2009 Harvard study estimated medical issues were responsible for 62% of bankruptcies, while a 2013 NerdWallet analysis based on the Harvard study came to a more conservative conclusion, or 57%. (Another study, done at Northeastern University, found a far lower rate, or 18% to 25%.)

The problem with looking at medical bankruptcy specifically is the same as deducing the cause of personal bankruptcy more generally: there isnt always one reason. The NerdWallet analysis, for example, didnt include indirect reasons for medical bankruptcy like lost work.

People use a credit card because they cant afford to pay for food and gas, so they can pay their medical bills because they have to keep their physician happy, Gaudreau said.

The latest numbers may pose an additional hurdle to repealing the ACA, the likelihood of which has dimmed recently after opposition from lawmakers. Though President Donald Trump ran for office on promises to repeal and replace the ACA, that effort has been challenged by divisions within the Republican party.

Read: What Trump can do to undermine Obamacare, now that the GOP health bill has failed

And, even if the health care law has contributed to a decline in personal bankruptcies, theres still evidence of its financial difficulties. Health-care premiums have gone up substantially in certain areas, and the high-deductible plans expose those on them to large out-of-pocket expenses.

See more: Entrepreneurs and small businesses on why they hate and love Obamacare

Moreover, its possible premiums could increase even more next year. High-profile exits from the ACAs exchanges or specific state exchanges could cause premiums to spike, and there could be even more departures health insurers have until June to decide.

Health Care Select Sector SPDR has risen 5.8% XLV, -0.49% over the last three months, compared with a 3.9% rise in the S&P 500 SPX, -0.13%

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Obamacare helped make a 50% dent in personal bankruptcies ... - MarketWatch

Wall Street Journal (subscription)

Puerto Rico Enters Bankruptcy Wall Street Journal (subscription) Puerto Rico was placed under court protection on Wednesday in what amounts to the largest-ever U.S. municipal bankruptcy, a stark illustration of the depth of the economic crisis afflicting a U.S. territory with more than three million inhabitants ...

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Puerto Rico Enters Bankruptcy - Wall Street Journal (subscription)

New York Times

Puerto Rico Declares a Form of Bankruptcy New York Times The island has roughly $73 billion of bond debt, and nearly $50 billion of unfunded pension obligations to restructure. Credit Alvin Baez/Reuters. Puerto Rico's leadership moved on Wednesday to place the island's debt crisis into federal bankruptcy ... Puerto Rico declares bankruptcy. Here's how it's going to unfoldUSA TODAY Puerto Rico files for biggest ever US local government bankruptcyReuters Puerto Rico files for biggest US municipal bankruptcyCNNMoney NBCNews.com -Washington Post all 171 news articles »

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Puerto Rico Declares a Form of Bankruptcy - New York Times

Charlotte Observer

Bankruptcy auction for property of NASCAR artist Sam Bass ... Charlotte Observer NASCAR memorabilia belonging to noted artist Sam Bass is being sold at auction by order of the bankruptcy court. and more »

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Bankruptcy auction for property of NASCAR artist Sam Bass ... - Charlotte Observer

Pennsylvania Toy Seller Files For Bankruptcy Wall Street Journal (subscription) A Pennsylvania company that sells plush toy Disney movie characters, famous athletes and sports mascots has filed for bankruptcy, blaming sales that dropped after some license partners would no longer allow the items to be sold on Amazon.com. Lawyers ...

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Pennsylvania Toy Seller Files For Bankruptcy - Wall Street Journal (subscription)

Wall Street Journal (subscription)

A Slow Bankruptcy Process Stops Locale-Reviving Jobs Wall Street Journal (subscription) We contacted the Rock County [Janesville] Development Alliance director to inquire about the site. We were told that we could not consider the site because it was still tied up in bankruptcy court. We then tried repeatedly to connect with Rep. Paul ...

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A Slow Bankruptcy Process Stops Locale-Reviving Jobs - Wall Street Journal (subscription)

New York Times

Alitalia Files for Bankruptcy, but Italy Balks at a Third Bailout New York Times But on Tuesday, even a papal decree would not have been enough to save Alitalia from what threatened to be its final stand, as Europe's most troubled airline filed for bankruptcy once more, this time amid signs that the government, and the Italian ... Alitalia Declares BankruptcyAgainCond Nast Traveler Alitalia Starts Bankruptcy Process as Etihad Cuts Off FundsBloomberg Alitalia kicks off bankruptcy proceedings, government grants loanReuters Travel Weekly -STLtoday.com -Financial Times all 98 news articles »

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Alitalia Files for Bankruptcy, but Italy Balks at a Third Bailout - New York Times