The Elderly and Bankruptcy

In recent years there has been a surprising and sad trend towards elderly individuals or couple filing for bankruptcy. The causes of bankruptcy are varied but the trend is not expected to move in the opposite direction any time soon.

One of the key factors that is seen as causing more people over the age of 65 to file for bankruptcy is retiring with debt. Many couples have mortgages on their houses later in life and were perfectly capable of making the mortgage payment while a person was working but have problems once both parties are retired. This problem is compounded when the couple has an adjustable rate mortgage on the home. Also, some couples retire with credit card debt. This also has been shown to play a huge role in the increase over the last couple of years.

Another factor that has led to more elderly bankruptcy is inadequate retirement funds. Many seniors have not put the time, money, or effort into growing their retirement account. This means that they really do not have enough money to live off of at the level they may have been accustomed to while still working. Social security and minimal savings are not enough. A recent study conducted by AARP shows that 14% of all 64 year olds were facing retirement with a negative net worth. In addition, more than a third of all seniors were dependent on their Social Security checks for more than 90% of their income.

The dramatic rise in medical expenses has hurt seniors as well. Individuals who are way up there in years may have planned appropriately for the medical expenses of 25 years ago but, because costs of everything have gone up so much, the savings are inadequate for living today. Some seniors cannot afford their prescription drugs at the same time they make car and house payments.

Contact a Boston Bankruptcy Lawyer

If you are an elderly citizen that is facing bankruptcy, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346 to discuss your options and to determine which bankruptcy chapter will provide the most benefit to you.