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When people are unable to repay their debts and find no other way out, they opt for bankruptcy. In recent years, there has been an increase in the number of elders filing for bankruptcy. compared to young filers, the number of senior citizens filing for bankruptcy has tripled in the past 25 years. According to Dallas based bankruptcy law firm Recovery Law Group, the reasons why bankruptcy filing has seen an increase in older debtors are:
- Higher healthcare costs
With increasing age, health complications are bound to happen. Thanks to erratic lifestyle, diseases like diabetes, hypertension, and obesity are on the rise. This causes a huge increase in medical expenses, which has not been initially catered for. This can throw any retiree under huge debt.
- Reduced income avenues
Once you reach a certain age, your ability to work more than one job decreases. Thus, your average income also gets reduced. Managing your expenses within something as low as $17,390 (average income of older American bankruptcy filers) can be quite difficult.
- Delay in getting full social security
Partial social security benefits are available for people from the age of 62 years, while full social security benefits are provided once you attain the age of 66 years and 4 months. This delay can result in incurring a huge amount of debts.
- Plunging retirement accounts
Most people are not good planners. Not saving enough in your retirement funds can lead to monetary issues when your heydays end. Any unexpected expense, such as sudden ailments, etc. can result in you ransacking your pension accounts.
- Increasing debt
The current generation and the one before them have often taken loans to fulfill various requirements. Caring for the elderly as well as taking care of the tuition fees of kids can leave you with huge amount of debts. Over time, the debts increase abysmally leading you towards bankruptcy.
- Too little too late
Most people keep on adding to their debts over their entire working life, with the idea that they will be able to pay it off. However, the realization dawns in a bit too late that the debts have added to create a huge burden which won’t be handled without assistance.
As soon as you realize that you will not be able to manage your debts on your own, it is important to seek consultation with professionals. You can call 888-297-6023 to schedule an appoint with experienced bankruptcy lawyers Dallas to know more about your options.