Bankruptcies for people 65 and up is on the rise, making up roughly 8 percent of all bankruptcy filers – an increase over previous years.
A few factors likely contribute to the fact that older Americans are turning to bankruptcy for debt relief.
- For one, the recession of 2008 hit the demographic hard. Many Americans who were poised to retire were instead looking at their savings to make ends meet or trying to return to the workforce to weather the unanticipated financial hit, sometimes unsuccessfully.
Another hurdle is that creditors typically can garnish up to 25 percent of disposable income. This approach only works until a car needs repaired or another necessary expense pops, then there are few options except to seek relief.
Of course, the number one source of personal bankruptcy is medical debt. Many who have an unexpected illness or injury are left reeling when the bills come in, especially those in the 65+ group that may be on a fixed income.
Many older Americans that file bankruptcy can look forward to a clean slate, but more importantly to many who are among the 65+ group, is the emotional relief they get after resolving their financial predicament so they can move forward.
If you have questions regarding what options Chapter 7 or Chapter 13 bankruptcy protection offers seniors, call 309-674-8125 or contact us online to schedule a free consultation with Peoria Bankruptcy Law Offices of Charles E. Covey.