The Attorneys Of Stewart Sorice Farrell Finoli And Cavanaugh LLC

More older individuals turning to personal bankruptcy

On Behalf of | Aug 16, 2018 | Personal Bankruptcy |

Many Americans, including those in Pennsylvania and other states, find themselves facing financial problems at older ages. Research show that, since the early 1990s, the number of people filing for personal bankruptcy at 65 years of age or older has tripled. The rise in personal bankruptcy among older Americans can be linked to several factors.

First, Americans’ full benefits from Social Security are not arriving as soon as they did in the past. In addition, out-of-pocket spending for medical expenses is on the rise. Furthermore, more 401(k) plans for saving for retirement are replacing company pensions. Finally, many people’s incomes are dwindling.

The median amount of wealth that people who file for bankruptcy at 65 years or older have is negative $17,000. Meanwhile, non-bankrupt people in this same age group have a median amount of wealth of over $250,000. Generation X members also appear to be filing for personal bankruptcy more than they did years ago. Of course, the problem with filing for bankruptcy at an older age is that a person does not have as much time to bounce back from the bankruptcy as a younger person would.

Nonetheless, filing for personal bankruptcy protection may be a smart choice for an individual who simply cannot make ends meet and overcome a large mountain of debt. Through bankruptcy, people in Pennsylvania can finally get the fresh financial starts they so desperately need. A bankruptcy attorney can help them to properly complete the filing process, all the while ensuring that their best interests are protected.