Credit: New York Times

 
Filing for bankruptcy in retirement has become more and more common. Why is that? You might be thinking that bankruptcy in retirement is reflective of the large group of baby boomers in retirement–unfortunately, that’s not the case. The percentage of individuals between ages of 55 and 74 has increased at too high a rate to account for the increase of population in retirement. When side jobs and social nets such as social security and family support fail them, more senior people are turning toward the financial safety net of bankruptcy.

Bankruptcy in retirement often happens due to the fact that medical bills start climbing at an accelerated rate after age 60.  Additionally, social security checks are low and for a fixed amount and sometimes unforeseen circumstances occur (such as a pandemic).  We also see many people fall prey to scams, or parents are stuck with an adult child’s student loans or other debt they got entangled in with their children. In the New York Times article: ‘ Too Little Too Late’: Bankruptcy Booms Among Older Americans” shows that since 1991 people aged 65 to 74 have filed bankruptcy 3 times more by the year 2016. Additionally, it shows that since 2018 12.2 percent of filers proved to be 65 or older, whereas 1991 was 2.1 percent. Since 1991 the rate of increase in those over 65 filing for bankruptcy has increased by 204%.  Any of this sound familiar?

Filing bankruptcy in retirement is a legitimate effort to rid oneself of oppressing debt that cannot be tackled on a fixed income. Being stuck with a lot of debt in retirement is challenging. Unlike younger clients, the older generation typically isn’t looking forward to increased earnings growth and face different challenges than younger clients. However, bankruptcy in retirement has often proved to be difficult older folks so seeking advice from an experienced bankruptcy lawyer can be key.

bankruptcy in retirement

Here at the Law Office of Douglas Barrett, “The Bankruptcy Guy” team works hard to aid seniors prepare and file bankruptcy.  With a focus on the individual we help you with what comes after you file bankruptcy by providing a game plan, free books, and tips on how to restore credit after filing for bankruptcy. As always first consolations for seniors is free,  Contact us today so we can start to help you today!

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