One of the harshest urban legends about bankruptcy is the perception that those who file are trying to "game" the system or acting in bad faith to wiggle out of their obligations. Nothing could be further from the truth. Those who file bankruptcy here in Arkansas, and elsewhere for that matter, are almost always industrious, sincere, hard-working people, with a long history of working and paying on time.
There are several reasons why consumers in Arkansas may find it necessary to choose bankruptcy to get out from under a crippling debt load. Reasons commonly cited for bankruptcy filings include credit card spending, unexpected medical expenses, losing a job and disability. Consumers who choose to get major debt relief by filing for bankruptcy are often industrious, hard-working individuals and married couples.
Even when insured, those in Arkansas and elsewhere who face the challenge of battling cancer find that they may become overwhelmed with medical bills. It's a testament to the depth of the medical care crisis that medical insurance cannot keep up with the burgeoning costs being charged by the healthcare community. Additionally, the placing of huge medical debt and financial worries on those who are in a battle for survival is inconsistent with the broad ideals traditionally underlying the delivery of medical care in the United States.
The Affordable Care Act imposes caps on medical expenses payable by consumers in Arkansas and elsewhere. However, indications are that the caps will not change the high rate of personal bankruptcy filings that are due to overwhelming medical debt. Knowledgeable observers predict that medical bills will continue to be a significant factor in over half of all bankruptcies filed.
One of the most frustrating elements of extensive medical treatment is prescription drugs. Medications certainly help us get over or cope with whatever malady or medical condition from which we are suffering, but they can also be wildly expensive. And when you consider that some of these prescriptions aren't merely a one-bottle prescription, but instead a part of a prolonged treatment that may take months or even years, then it's easy to see how the medical bills can soar.