Thousands of Americans file for Chapter 7 or Chapter 13 bankruptcy every day when they cannot pay back their creditors and can no longer bear their financial burdens. However, recently, the number of senior adults who file for bankruptcy is increasing. According to various studies and news outlets, the number of citizens over the age of 65 filing for bankruptcy has doubled in the past two decades. The Social Science Research Network stated that between the years 1991 and 2016, the rate increased by 204%. Why is this happening?
Understanding the Reason Behind the Increase
Part of the reason why elderly bankruptcies are on the rise is due to the fact that senior adults often have more health-related problems and, consequently, higher health care costs. Without the higher income they once relied on prior to retirement, taking on these costs can make it difficult to survive. Although Medicare can provide a fair amount of coverage, it cannot cover more extensive treatment, most dental procedures, hearing aids, or eye exams for prescription eyewear. Additionally, even with Medicare, one would still likely have coinsurance, co-payments, and deductibles that are unreasonably high for a senior’s budget.
That said, there is more to elderly bankruptcy than health care costs. Much like younger people who are compelled to file for bankruptcy due to bills they cannot seem to ever pay off, senior adults also end up filing for bankruptcy after years of trying to pay off credit card bills to no avail. Generally, once creditors start reaching out to them with threats of a lawsuit, elderly adults feel forced to consider bankruptcy, despite years of avoiding and putting it off. They are the generation who was raised by parents who endured the Great Depression, so filing for bankruptcy is often a last resort in their mind.
Changing Your Lifestyle
If you are struggling to pay off your debt, you need to contact a bankruptcy attorney to discuss your options and the best course of action for your future. You should also get started on changing your lifestyle. It might be hard to accept changes in your standard of living, but cutting costs where you can is necessary. Consider living in a retirement community or with a relative with whom you can share living expenses. If you are healthy enough to work a part-time job, this can also help you live more comfortably.
Speak to a Compassionate Bankruptcy Attorney Today!
If you are unable to pay off your debt, you should seek skilled legal help to get out of this troubling situation. At Campbell Law Firm, our team of bankruptcy attorneys is here to provide you with the sound legal advice you need to ensure you are able to achieve relief and look toward a better and brighter financial future. With over three decades of experience on our side, you can trust that your case will be in good hands with us.
Contact our office today at (903) 345-0031 to schedule a free consultation with a member of our team.