Definition of bankruptcy
The definition of bankruptcy is the legal status of a person
or other entity that cannot repay it’s debts and files a bankruptcy petition
with the appropriate Court requesting the debt be discharged. In Florida,
thousands of debtors file for bankruptcy every month. For most it is a measure
of last resort. Many debtors try for years to pay their debt before succumbing
to the realization that it virtually impossible.
A recent trend is that older debtors are beginning to file
bankruptcy with more frequency. The rate is more than double what it was in the
early 1990’s. The rate of debtors over the age of 65 filing for bankruptcy
increased over 200% from 1991 to present. This increase is caused in part by
the medical bills as well as the lower incomes they receive and the nationwide
decline in pension, retirement pay and interest rate earned on money saved or the
death of a spouse. Many resort to living with their children or doing without
necessities to pay their bills.
Medicare does pay some health care costs, but it does not
cover extensive care, hearing aids, dental procedures, eye exams, foot care and
some other treatment. Sometimes there are co-pays, coinsurance and deductibles.
The skyrocketing medical costs are just too much. Sometimes Churches, friends
or family will help. However, once they get behind on their bills, the constant
calls from bill collectors are just too stressful and they contact a bankruptcy
attorney for help.
Most debtor’s over 60 are reluctant to file for bankruptcy.
They have a stronger sense of a moral obligation to pay. Some have parents that
grew up during the Great Depression or were part of the “Greatest Generation”.
The decision to file for bankruptcy takes place over time. Most debtors
struggle for years in what’s know as the “sweat box”. Most deplete all their
assets when it wasn’t necessary. The assets could have been protected and kept
under the bankruptcy laws. It’s a very difficult and painful decision, but one
that ultimately leaves them in a better financial position for their Golden
Years. The over 60 year old clients are some of the most appreciative clients I
have. They are respectful, compliant and will bake you a cake from scratch for
your birthday. At least one I’ve represented does.
Tony Turner is a Bankruptcy
Lawyer that has been practicing
law for 27 years. His office is dedicated to representing debtors in Bankruptcy
proceedings and assisting his clients discharge burdensome and overwhelming
debt.
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