Any person can find themselves in a difficult financial situation that causes them to ponder the prospect of bankruptcy, but according to a recent study, bankruptcy has boomed among older Americans, which some believe is too little too late for the type of support that bankruptcy provides.
Traditional ideas in retirement, according to a recent article, are being impacted by the true reality of bankruptcy. The signs of possible issues such as rising medical costs, pensions that are disappearing and inappropriate savings have been building for years. The rate of people aged 65 and above who are filing for bankruptcy is three times higher than it was in 1991, the study identified, and that same group accounted for a much bigger share of all filers of bankruptcy.
The study indicates that there has been a shift over the course of the last three decades from taking financial risks from the government and employers to individuals who are now bearing a significant responsibility for their own financial life. The transfer has come in the form of replacing employer provided pensions with 401(k) savings plans, higher levels of out-of-pocket spending on health care affecting many elderly people, declining incomes, and waiting longer for full social security benefits.
The study was recently completed by the consumer bankruptcy project and shows that older people whose finances were already in a precarious situation will have very few places to turn. The forces at work affect multiple generations but older people are often in a much more precarious situation as far as trying to weather out the storm. If you or someone you know is contemplating filing for bankruptcy, you need the support of an experienced bankruptcy lawyer.