Seeking relief: Bankruptcy and health outcomes of adult women

•Declaring bankruptcy negatively affected self-rated health among older women.•A prior history of depressive symptoms explained its negative relationship with a bankruptcy declaration.•Chapter 7 was associated with poor physical health relative to those who did not file.•Chapter 7 was associated with depressive symptoms relative to Chapter 13 filers.•Poor health is an unintended consequence for women who seek financial relief through bankruptcy.

This study examined the impact of declaring consumer bankruptcy on the physical and mental health of adult women and if outcomes differed depending on whether the filer received automatic debt discharge under Chapter 7 compared to a debt repayment plan with Chapter 13. Sample data consisted of women from the NLSY79 cohort who completed the age 40 and 50 health modules as of the most recent wave. Results indicated a negative effect of bankruptcy on self-assessed health, whereas prior health history explained its negative relationship with depressive symptoms. Debt liquidation under Chapter 7 was associated with poor physical health relative to those who did not file and with depressive symptoms relative to Chapter 13 repayment plan filers. Poor health is an unintended consequence for women who seek financial relief through bankruptcy.