The number of seniors filing bankruptcy in the U.S. has increased dramatically over the last three decades. In the early 1990s, bankruptcy among seniors accounted for only 2% of bankruptcy claims. Over the years, bankruptcy among seniors has climbed to 12% with over a hundred thousand seniors filing for bankruptcy.
Rising medical costs at a time when Medicare covers fewer expenses, stagnant or reduced wages, and fewer good pensions are one side of the equation; the other is that many seniors are carrying debt into retirement.
In fact, more than half of senior households carry debt of some kind, with roughly a third owing a mortgage or other housing debt. Like most Americans, many seniors have fallen prey to predatory lending and many carry credit card debt on a fixed income making it very difficult to turn things around.
Seniors seeking bankruptcy protection have a median debt of roughly $100,000, three times their average income. Seniors median net worth is a negative $17,000 underscoring just how rough it is out there.
Bankruptcy protection offers one of the few strategies for seniors or anyone with overwhelming debt to not only put a stop to creditor harassment, but also an opportunity to liquidate unsecured debt such as credit cards and medical bills making it possible to redirect resources to essential expenses. If you are facing a difficult financial situation and 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.