Bankruptcy

Senior Citizens Filing For Bankruptcy in Record Numbers

By Mark Buckley, Rhode Island Bankruptcy Lawyer

Mark Buckley, Esq. Rhode Island Bankruptcy Lawyer

The American Bankruptcy Institute reported 1.4 million consumer bankruptcy filings in 2009.  A lot of those who filed were senior citizens.  This is a definite shift from past decades where seniors were among the least likely to file for bankruptcy relief. 

I remember a time when seniors preferred making their purchases with cash and refused to use credit cards.  They would buy an item only if there was enough cash to do so.  They were largely suspicious of the ?buy now – pay later? approach. 

So what caused seniors to change the way they made purchases?  Well, a combination of things.  Basically, life got more complicated and credit card companies forcefully marketed to seniors to simplify the purchase process. 

From grocery shopping, to picking prescriptions up at the pharmacy, and making co-pays for their medical and dental appointments, credit cards became the accepted form of payment.  The end result was that seniors, on average, now have more credit card debt than the younger generation.

In my Rhode Island bankruptcy practice, the age 65 plus group continues to expand.  Studies have shown that the fastest growing segments that need to file for bankruptcy are between the ages of 75 and 84.

It?s almost impossible to live on a fixed income when the cost of everything you need is going up.  For those seniors who were able to save up for retirement, not merely relying on Social Security, the present recession and recent stock market crash destroyed a lot of their wealth.  Many lost a large part of their retirement money and there isn?t enough time to rebuild their investments.

I can remember a client who was in his late 70?s.  He was unable to live on a fixed income due to credit card debt.  He had already suffered two heart attacks, but he still needed to work to pay his credit card bills.  He ended up taking a night-shift security job, patrolling a warehouse parking lot in the inner city. 

That was a very sad situation.  He was risking what little of life remained to pay interest on a debt he would never be able to repay.  I?m glad he ultimately decided to explore debt relief options and give me a call.

If you are a senior citizen and credit card bills are preventing you from affording prescriptions, health care, or food, you should call a bankruptcy lawyer.   Bankruptcy laws can help you protect your property and stop harassing phone calls from creditors. 

By contacting a skilled bankruptcy lawyer, you can end the ?robbing Peter to pay Paul? cycle and reduce the stress you never thought would be part of your golden years.

Mark Buckley is a Rhode Island bankruptcy lawyer and CERTIFIED FINANCIAL PLANNER professional.  If you live in Rhode Island and have debt problems, call (401) 467-6800.

Full post as published by Bankruptcy Law Network on February 15, 2010 (boomark / email).