In a survey of older Americans regarding their reasons for filing bankruptcy, about three in five report medical bills played a role, over two thirds say a drop in income was to blame, and nearly three quarters were victims of creditor harassment that led them to seek protection.
Looking at the median household of Americans 65 and older reveals that on average most have only 60K in liquid savings, with the bottom 25 percent deterring around 3K. More people are also entering retirement with debt and may have family members that are counting on their financial support.
Although older Americans draw social security, it is not enough. Nearly half of social security payments are used to bridge the gap in healthcare not covered by Medicare for many, and the lowest income households have debt payments that equal more than 40 percent of their social security income. All told, many older Americans have little left over to meet their basic needs.
If You Are Considering Bankruptcy in Retirement
Contact an Experienced Illinois Creditor Harassment Attorney for Help
Because it’s easy to fall behind with today’s skyrocketing cost of living, many older Americans are filing for bankruptcy protection. If you are in a difficult financial situation, whether you are approaching retirement or already retired, it is important to develop a number of strategies to protect your financial future with an eye to protecting the assets you still have. Contact Peoria bankruptcy attorney Charles E. Covey for help.