An economy that is still in recovery mode from a near collapse and the limited employment opportunities for an aging population has contributed to a rise in seniors filing bankruptcy over the past few years.
The great American wealth elimination has hit seniors that are dependent on their fixed social security income especially hard. This has caused many older adults to use their credit cards for basic necessities like groceries and gas. In fact, a University of Michigan study found that two-thirds of seniors filing bankruptcy indicated that credit card debt was the primary reason.
While those under fifty have time to rebuild their savings, people at or near retirement age do not have that luxury. Since many seniors can no longer depend on the income appreciation of their retirement accounts or their home, some are seeking relief from their mounting debts and protection of their remaining assets through bankruptcy. According to the Consumer Bankruptcy Project, the number of bankruptcy filings among senior citizens between the ages of 75 and 84 skyrocketed more than 400%!
Bankruptcy protection can give seniors the breathing room they need to live their remaining years within their means and be better prepared for unforeseen circumstances in the near future. While bankruptcy is not for everyone, if you or someone you know is a senior citizen facing a financial hardship, consult with an experienced bankruptcy lawyer to determine if filing for bankruptcy is a viable option.