When it comes to debt, there are a lot of reasons that Americans consider filing for bankruptcy. In recent years, there has been a spike of older adults that file for bankruptcy. After years of smart financial decisions, why are older adults suddenly in debt?
Here is what you need to know about bankruptcy and older adults.
The why of bankruptcy
Since the 1990s, according to Forbes, the amount of people over the age of 55 who have filed for bankruptcy has increased. In fact, those numbers rose about 66% for those between the ages of 55 and 64. The numbers are 204% more for those who are between the ages of 54 and 74.
One of the major contributors to bankruptcy is medical debt. Over half of older adults who are in debt owe money on medical bills. As an older adult, you may not work anymore. You may not have the income to replace your savings as you try to pay off your medical debt. This is where bankruptcy comes in to wipe debts clean.
The how it helps of bankruptcy
Bankruptcy can be a crucial tool for older adults when unexpected expenses occur. After all, if you experience job loss or any other life event that drains your finances, you may feel like you cannot climb out of debt. Bankruptcy can be beneficial because it provides you with a means to manage or wipe your debts clean, it can prevent the foreclosure of your family home and stop repossessions of your property.
Debt reorganization can be crucial to the fresh start that you need. To find out more about bankruptcy, more information is available on our webpage.