Bankruptcy For Seniors

Many seniors have to live off a limited income while still dealing with the rising costs of healthcare and home care. As a result, more and more seniors are finding themselves dealing with financial hardship and increased debt during their retirement years. All too often, seniors who rely on small social security payments or survivors’ benefits end up living beyond their means and must use up their credit to get short-term relief. If you are a senior who is in debt due to unexpected expenses, you might want to consider filing for bankruptcy.

According to one study from 2018 that analyzed the demographics of cases filed before 1991 compared to cases filed after 1991, seniors are filing for bankruptcy more frequently than ever before. The study also revealed that the rate of younger Americans filing for bankruptcy has reduced. The study states: “The percent of bankrupt filers age 65-74 has increased almost 500 percent since 1991, growing from 2.1 percent of the bankrupt population to 12.2 percent in 2016.”

The increased bankruptcy rate is attributed to a decline in the availability of adult children to provide a safety net to their parents. According to the National Council on Aging, median debt among senior households has more than doubled from $18,385 in 2001 to $40,900 in 2013.

Major financial strains for seniors include:

• Student Loan Debt
• Mortgage Debt
• Healthcare Debt

If you are over the age of 65 and you are considering filing for bankruptcy, you might be entitled to additional exemptions. Our lawyers can assess the details of your case and explain all of your options under the law.

Call (847) 440-5998 to set up a consultation with our experienced legal team in Northbrook.