Older Debtors Filing Is The Recent Trend In Bankruptcy?
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 1990s. The rate of debtors over the age of 65 filings for bankruptcy
increased over 200% from 1991 to the present. The cause of this increase is 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 known as the
“sweatbox”. Most deplete all their assets when it wasn’t necessary. The assets
could have been protected and kept under 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.
Please call the Law Office of Tony Turner if
you’d like a free bankruptcy or workers’ compensation consultation
904-679-2020.
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