There has been a rise over the last few years of senior citizens filing for bankruptcy. Here in Connecticut and elsewhere in the nation, more and more people over the age of 65 are using Chapter 7 bankruptcy as a way to offset mounting debts that can result from a variety of sources unique to the elderly. In many cases, seniors have reported a definite upward trend in their quality of life once they are out from under the burden of unsustainable debt.
For many seniors, medical debt is the biggest reason people over 65 file for bankruptcy. This is particularly true of seniors who have lost their spouses, and even more so for women in this situation. Often, women of this age bracket suffer from a lack of financial literacy, as their husbands were traditionally responsible for the family’s financial affairs. If the husband passes away before the wife, which is common given women tend to live longer than men, the senior women left behind can understandably struggle with their finances.
The 2008 recession also took a considerable toll on this age group, another factor some experts say contribute to the rise in bankruptcy filings. Creditors can also be more aggressive with elderly debtors, leading to stress and confusion that can often make things worse. Filing for bankruptcy with the support of a dedicated attorney, can help to assuage this stress and mitigate financial hardships, particularly for widows.
Of course, Chapter 7 bankruptcy is not for everyone. This is why Connecticut residents facing serious financial hardships due to debt may benefit greatly from the support of an experienced bankruptcy attorney who can help work with the bankruptcy trustee to smooth the road to financial independence. Old or young, this is a viable option for anyone facing insurmountable debt.
Source: Forbes, “The Reasons More Older Americans Are Filing For Bankruptcy“, Tami Kamin Meyer, Nov. 16, 2017