The number of elderly filing for bankruptcy is three times what it was in 1991.
As a study, from the Consumer Bankruptcy Project, explains, elderly people whose finances are precarious have few places to turn. “When the costs of aging are off-loaded onto a population that simply does not have access to adequate resources, something has to give,” the study says, “and older Americans turn to what little is left of the social safety net — bankruptcy court.”
“You can manage O.K. until there is a little stumble,” said Deborah Thorne, an associate professor of sociology at the University of Idaho and an author of the study. “It doesn’t even take a big thing.”
Bankruptcy can offer a fresh start for people who need one, but for older Americans it “is too little too late,” the study says.
“By the time they file, their wealth has vanished and they simply do not have enough years to get back on their feet.”
According to an article in the New York Times – Not only are more older people seeking relief through bankruptcy, but they also represent a widening slice of all filers: 12.2 percent of filers are now 65 or older, up from 2.1 percent in 1991.
Even the smallest of unexpected expenses, such as a broken tooth or vehicle accident, can lead to a financial explosion.
Rising costs for housing and health care point to increased living expenses, along with other burdens, such as caring for younger generations or co-signed student loans for children and grandchildren. Even the smallest of unexpected expenses, such as a broken tooth or vehicle accident, can lead to a financial explosion. Not to mention the horrific damage a serious medical issue brings to the already financially strapped elder person.
By 2013, the average Medicare beneficiary’s out-of-pocket spending on health care consumed 41 percent of the average Social Security check, according to Kaiser Family Foundation, which also estimated that the figure would rise.
It is a challenge for anyone over 65 to find sources of additional income.
Those who need help, but don’t know who to ask.
In order to cover basic living expenses many are forced into low paying jobs, such as a greeter at Walmart or clerk in convenience store. In the long run the income from job barely cover the costs related to employment, such as increased transportation costs, additional health problems related to the physical burdens of working (such as standing too long or lifting heavy items).
At a time in their lives when our parents and grandparents deserve some peace of mind they are left with living in a financial nightmare.
There is no one answer to this nationwide problem, but it must be addressed now because the next generation facing retirement is carrying more debt than members of earlier generations, in an analysis by the Employee Benefit Research Institute. This is a problem that is not going away any time soon.
By Diane Drain|Published On: August 11th, 2018|Last Updated: July 14th, 2022|
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*
5 / 5
“You folks are the BEST OF THE BEST in Arizona.” M.H.
You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.
5 / 5
“My only regret is that I didn’t find Diane sooner.” K.H.
I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the whole process. My only regret is that I didn’t find Diane sooner. If you find yourself in a financial situation that you can’t correct on your own, please Call Diane Drain as soon as possible.
5 / 5
“Filing for bankruptcy can be a stressful life event” R.A.
Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people get their life back on track. I would highly recommend them if you need a bankruptcy attorney.
“She helped me understand why and how certain steps were necessary...” N.G.. I greatly appreciated Diane's thoroughness and ability to explain the process. She helped me understand why and how certain steps [...]
Want to avoid dishonest debt collectors? Watch this video from FTC’s Consumer Advice By Joseph Ferrari,July 22, 2022 (reprint from FTC, Consumer Alerts) During Military Consumer Month 2022, the FTC [...]
We are a debt relief agency; we help individuals and small businesses through the bankruptcy process. Attorney Advertising. This website is designed for general information only. Any information you obtain from this website should not be construed as legal advice, nor as grounds for forming an attorney-client relationship. You should consult an attorney for information on obtaining formal legal advice.