Seniors with debt are now more likely to file for bankruptcy than they have been in the past decade. The claim is corroborated by a large number of bankruptcy experts such as Chang Diamond, APC, who cite various reasons for this trend. There is also serious debate about whether this is a natural step in our time or a big problem.
People don’t usually associate bankruptcy with a fresh start, especially at a later age when you have limited time to rebuild your credit rating.
In this article, we’ll look at this trend, the pros and cons, and the reasons why seniors are filing for bankruptcy.
More and more Cases of bankruptcy of the elderly
First, we must establish that there are different definitions of what is a senior citizen or at what age he becomes a senior citizen. Despite this, the fact of an increase in the number of bankruptcy filings is undeniable. This usually applies to people over 55 who are facing various financial problems such as lower income and medical bills.
To get a clearer picture, people over 55 made up 8.2% of all bankruptcy filings in 1991. This number increased to 22.3% by 2007. The largest percentage was made up of people over the age of 75, followed by the age groups 64 to 74.
The combination of reduced income and higher spending is what motivates seniors to file for bankruptcy as they walk this thin financial line.
When to file for bankruptcy
Most seniors only file for bankruptcy after they have gone through all their retirement and retirement funds and are trying to pay off their medical or other debts. However, it’s a good time for retirees to consider filing for bankruptcy while they still have savings.
Filing for bankruptcy is always better done sooner rather than later. Many citizens prove their judgment, so they don’t always have to file for bankruptcy. However, if this is what you believe, you should weigh your options sooner rather than later.
Senior bankruptcy has very few downsides
You may be sad to think of a senior citizen having to file for bankruptcy at such a vulnerable age, which is usually the best way for seniors to solve their financial problems. In fact, filing for bankruptcy at a later age actually has more pros than cons.
For example, older people are less likely to acquire new assets or receive new loans at this age. Thus, the impact of bankruptcy on their credit rating is not as significant as for a young couple planning to buy a house.
In most cases, the only source of income for older people is social security. People with very small assets can be considered evidence of judgment, which means they don’t even have to file for bankruptcy to begin with. However, some seniors have decided to file for bankruptcy simply to get rid of the harassment of creditors.
If you have an elderly parent in dire financial straits, consider talking to them about bankruptcy. This is usually the best option not only for them, but also for their descendants. If you don’t, it might be time to discuss bankruptcy proceedings with them.
Chang Diamond APC. Bankruptcy attorneys are bankruptcy experts in San Diego, California. If you need a reliable attorney to guide you through the bankruptcy process, you can contact them at 9089 Clairemont Mesa Blvd # 110, San Diego, CA 92123 or 800 718-8118.