Seniors with debt are now more likely to file for bankruptcy than they have been in the past decade. This claim is corroborated by a large number of bankruptcy experts such as Chang Diamond, APC, who cite various reasons for this trend. There is also serious debate as to whether this is a natural step in our time or a big deal.
People don’t usually associate bankruptcy with a fresh start, especially at a later age when you have little time to rebuild your credit rating.
In this article, we’ll take a look at this trend, the pros and cons, and why older people are filing for bankruptcy.
More and more cases of bankruptcy of the elderly
First, we need to establish that there are different definitions of what an elderly person is or at what age he becomes an elderly person. Despite this, the fact of an increase in the number of bankruptcy filings is undeniable. This generally applies to people over 55 who are facing various financial issues like lower income and medical bills.
To get a clearer picture, people over 55 accounted for 8.2% of all bankruptcy filings in 1991. This number rose to 22.3% in 2007. The highest percentage was made up of people from over 75, followed by the 64 to 74 age groups.
The combination of lower income and higher expenses is leading seniors to file for bankruptcy as they walk that thin financial line.
When to file for bankruptcy
Most seniors do not go bankrupt until they have exhausted all of their retirement and retirement funds and try to pay off medical and other debts. However, now is a good time for retirees to consider filing for bankruptcy while they still have savings.
It is always best to file for bankruptcy as soon as possible. Many citizens prove their judgment, so they don’t always have to file for bankruptcy. However, if that’s what you believe, you should weigh your options as soon as possible.
Senior bankruptcy has very few downsides
You might be sad to think that a senior has to file for bankruptcy at such a vulnerable age, which is usually the best way for seniors to deal with their financial problems. In fact, filing for bankruptcy at an older age actually has more advantages than disadvantages.
For example, older people are less likely to acquire new assets or receive new loans at this age. Thus, the impact of bankruptcy on their credit rating is not as great as it is for a young couple who are considering buying a home.
In most cases, the only source of income for the elderly is social security. People with very small assets can be seen as proof of judgment, meaning they don’t even have to file for bankruptcy to begin with. However, some seniors have decided to file for bankruptcy just to get rid of the harassment of creditors.
If you have an elderly parent in difficult financial circumstances, consider talking to them about bankruptcy. This is usually the best option not only for them but also for their descendants. If you don’t, it may be time to discuss the bankruptcy process with them.
Chang Diamond APC. Bankruptcy Attorneys are bankruptcy experts in San Diego, California. If you need a reliable lawyer to guide you through the bankruptcy process, you can contact them at 9089 Clairemont Mesa Blvd # 110, San Diego, CA 92123 or 800 718-8118.
