Did you know that 8 percent of bankruptcy filers are aged 65 or older? This number has been trending upwards since 2008. One reason was the recession, which hit the elderly age group hard. And in some states, creditors are allowed to garnish up to 25 percent of a debtor’s disposable income, so bankruptcy can become an attractive option for people who fall behind on their bills.
But perhaps the most common cause of senior bankruptcy is medical debt. Medical debt is the number one source of personal bankruptcy filings in the U.S. and given the high cost of healthcare for elderly people, it is easy for a debt spiral to drag down the finances of seniors with healthcare needs.
According to the Consumer Financial Protection Bureau, debt collection is the most-complained about product or service for consumers over 62. The incessant calls and predatory nature of these companies can create a great deal of anguish when the debtors know they are unable to pay.
Is a Bankruptcy a Good Idea for Me If I Am Over 65?
If you are considering bankruptcy over the age of 65, you may not know where to begin. But you should know that bankruptcy is not just a tool for financial relief. It can also be a huge boon for your mental health. Once you have your case filed, you can breathe a sigh of relief knowing that within a few short months or over the course of a couple years, your financial woes will be over. If you are struggling with massive debts and are considering bankruptcy, don’t feel bad – it can be an emotional lifesaver.
Our law firm can help you put together a thorough portfolio of your finances and show you how bankruptcy can alleviate your struggle.