Did you know that “gray” bankruptcies are on the rise? The number of Americans over the age of 65 that file bankruptcy has more than tripled since 1991.
Why Are So Many Seniors Filing Bankruptcy?
There are many factors that experts consider as contributors to the “gray” bankruptcy phenomenon. Possible contributing factors include eroding Medicare and Social Security benefits, shifts away from defined benefit pensions, increasing health care costs, and more. There are a wide variety of options if you’re looking for economic and societal changes that contribute to the financial woes of modern-day seniors.
But What About Seniors and Gray Bankruptcy?
According to a recent study from Consumer Bankruptcy Project researchers, the number of Americans aged 65 to 74 that filed bankruptcy doubled since 1991. And the number of Americans over the age of 75 that filed bankruptcy tripled. One out of every seven bankruptcy filers in the United States is aged 65 or older. The numbers indicate an increase of close to nearly five-fold in the space of just twenty-five years, and that constitutes a notable demographic shift. The study was based on surveys collected from February 2013 and November 2016. The study collected data from 3,200 people who declared bankruptcy.
What Are Some of the Most Common Causes of Gray Divorce?
When the study participants were asked about the reason or reasons they decided to declare bankruptcy. Study participants that fell into the senior age range often cited medical expenses and general debt. One study participant’s answer indicated that his wife experienced medical issues that led to her leaving her job, which resulted in a loss of income. Two years later, the husband himself developed medical problems and had to stop working. The couple soon found themselves unable to handle their debt load. After the situation escalated to constant collection calls, they contacted a bankruptcy attorney for help. This particular example of the 62.2% of study participants in the senior age group identifying medical expenses as the reason they filed bankruptcy, many of which also blamed reduced government benefits and medical tests not covered under insurance.
If you are considering filing personal bankruptcy and you aren’t sure if it’s the best decision for your situation, please don’t hesitate to get in touch with our experienced bankruptcy attorneys to discuss your options. Most bankruptcy offices in the Chattanooga area don’t have a single Consumer Bankruptcy Specialist on staff. Our office is the only one in Chattanooga with two. You are in good hands with Kenneth C. Rannick P.C.