Coming up next, Debtor Prision!

Bankruptcy bill passed. How did this happen? Easy, the people who need to file for bankruptcy aren't big political donors. Watch for an increase in filing in the next six months and then the punitive fun begins! Soliders and their families! Stupid people who choose to get cancer! Dumb software programmers whose jobs got outsourced!

A bankruptcy-related poll at MSNBC asks: “Will new bankruptcy laws curb Americans' spending habits?” The choices are (1) Yes, it's a good deterrent and will rein in reckless spenders and (2) No, spendthrifts will overspend no matter what the law says.

What's the correct answer? Neither. The poll is predicated on the hackneyed premise that the average American bankruptcy filer is a spendthrift whose unchecked pursuit of luxury goods is the root cause of her bankruptcy. If that were true, bankruptcy reform would be easy. But it isn’t true. The research has been overwhelming. About 90% of those who file for bankruptcy do so after a job loss, a serious medical problem or a family break up. How about a poll on that?

-- Jason Spitalnick
Talking Points Memo Bankruptcy Special Blog

The human face of bankruptcy.

Debtors’ narratives painted a picture of families arriving at the bankruptcy courthouse emotionally and financially exhausted, hoping to stop the collection calls, save their homes, and stabilize their economic circumstances. Many of the debtors detailed ongoing problems with access to care. Some expressed fear that their medical care providers would refuse to continue their care, and a few recounted actual experiences of this kind. Several had used credit cards to charge medical bills they had no hope of paying.

The co-occurrence of medical and job problems was a common theme. For instance, one debtor underwent lung surgery and suffered a heart attack. Both hospitalizations were covered by his employer-based insurance, but he was unable to return to his physically demanding job. He found new employment but was denied coverage because of his preexisting conditions, which required costly ongoing care. Similarly, a teacher who suffered a heart attack was unable to return to work for many months, and hence her coverage lapsed. A hospital wrote off her $20,000 debt, but she was nonetheless bankrupted by doctors’ bills and the cost of medications.

A second common theme was sounded by parents of premature infants or chronically ill children; many took time off from work or incurred large bills for home care while they were at their jobs.
MarketWatch:Illness And Injury As Contributors To Bankruptcy

Culture of life my ass.

Most of my 13 readers know the phrase, "There but through the grace of God go I." Do you ever wonder if the President or his family think this?
H.W. Bush's daughter, W's sister, died of leukemia. How might that impacted George if it had caused the family to file bankruptcy? What if his family was one of the 1.9–2.2 million Americans (filers plus dependents) who experienced medical bankruptcy? What if his failed company wasn't bailed out?

In seven to ten months we will start to hear some more stories about normal people crushed by medical debt. Remember who helped make these stories possible.