Tag Archives: #Unemployment

Why Are More Older Americans Filing for Bankruptcy?

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…
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Do I Need to be Employed to File for Bankruptcy?

Employment is not a prerequisite for bankruptcy, but depending on the type of bankruptcy you are filing for, your employment status will have different effects. Chapter 7, Chapter 13 and Unemployment Chapter 7 bankruptcy, for example, will go more smoothly for someone who does not have a job. Chapter 7 bankruptcy is designed for low-income debtors with little to no assets. In most Chapter 7 filings, creditors will not be able to recoup any debts since the debtors do not have any property that the creditors can claim. Because of this, filers for Chapter 7 must pass a means test. If you make less money than the median for your state, you automatically qualify for Chapter 7. If you are unemployed, you will likely pass the means test. In Chapter 13 bankruptcy, though, you may run into obstacles getting approved. Chapter 13 requires debtors to create a payment plan over…
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