A term has been introduced into the lexicon for those in the legal professional and that is the “graying of bankruptcy.”
Bankruptcy filings continue to rise for the older generation. On a personal level, I can tell you that a large percentage of my bankruptcy clients are of retirement age.
Per Forbes, in 1991, elders made up 2% of the bankruptcy relief claims, but now that has increased to 12%.
Why the Increase in Bankruptcy Filings for the Elderly
A stagnation of wages, weakened unions, and loss of good pensions plans with a switch towards 401(k)-type options.
Remember, the value of IRA’s fluctuate and when the real estate housing market crashed in approximately 2007, I had a wave of clients that never considered the bankruptcy, but their IRA accounts were worth nothing, forcing them into bankruptcy.
One client, a surgeon was contemplating retiring with $500,000 in his IRA. To this day, he is still working.
In addition, medical care is an issue with Medicare paying less for health care and with people living longer than ever, those costs just increase.
Longer life expectancy also means seniors outlive their retirement funds, forcing them to have Social Security as their only source of income which is never enough.
Considering bankruptcy? Feel free to schedule a free consultation with bankruptcy attorney Alex Hernandez
Representing clients in the areas of Chapter 7 Bankruptcy, Family Law/Divorce, and car and motorcycle accidents for 20 years.
(904) 712-5565 or (305)-688-LAWS (5297).
*Se Habla Español