Bankruptcy due to catastrophic illness is not the same as Bankruptcy due to medical bills.
I’d bet the common scenario is somebody becomes too ill or injured to work & loses their job. Their meager savings are eaten by rent & groceries within a couple of days / weeks / months, then it’s just a rapid descent into debt until MasterCard gets tired of subsidizing living expenses.
Around then all the mediacl bills arrive since health insurance, if any, ended when the job did.
So they declare bankrupcy with zero assets, no job, little or no employability, a bunch of credit card bills for living expenses & a bunch of medical bills for treatment.
Was it the medical bills that “caused” the bankrptcy?
Not the way I see it. The med bills may have been the coup de grace that made the debtor realize it was waay beyond hopeless, but they were going to declare bankruptcy even if somebody else covered the med bills 100%.
Most people simply cannot go several months without income & survive financially. All the more so if they have an ongoing health issue that makes employment hard to get or keep afterwards.