How Bankruptcy and Healthcare Are Linked

Congressional Republicans have spoken, rather harshly, with the new bankruptcy legislation, which will affect primarily middle- and lower-income families. Studies show that the majority of bankruptcy filings result from families that are struck by catastrophic uninsured healthcare costs, divorce or job loss.

One would think that banks and credit card companies, complaining that the bankruptcy laws were heretofore stacked against them, would be more guarded when it comes to extending credit. Instead, financial institutions incessantly solicit and extend credit to millions of American families. They charge usurious interest rates, on top of hefty late charges and various other fees, and most manage to turn a good profit on their loan portfolios.

While addressing all of the wrongs that are supposedly overwhelming the credit industry, no one suggested that it would be a good idea to fix the healthcare system, which alone is responsible for about half of the bankruptcy filings.

Gregory J. Ryan

Woodland Hills