What seniors need to know about bankruptcy

On Behalf of | Nov 14, 2015 | Bankruptcy Law Basics

Bankruptcy is not something confined to a particular age group or demographic. It is possible to be overwhelmed by debts at any stage of life, whether you are young and just starting out on your own, or a senior citizen on a fixed income.

In fact, bankruptcy among seniors is relatively common these days. Part of this is due to the fact that the population is getting older; baby boomers are reaching retirement age and finding that they may have encountered unexpected expenses or have nagging debts from their working years that they never managed to pay off.

Much like the population as a whole, there is no single reason why people might be facing overwhelming debt. Some frequent reasons may be:

Medical bills. A drastic medical event might exceed insurance benefits and lead to sudden medical bills that can easily go into the thousands or tens of thousands of dollars, or even more.

Problems with the economy. The 2008 recession decimated many retirement accounts, including those of people who then had to put off retirement or rely on credit cards to get by — and without the savings to pay them off.

Credit card debt. For those on a fixed income, can be a lifeline when surprise expenses come up. However, credit card balances can rapidly increase, and when fees add on to the total, the debt spiral can be hard to emerge from.

Seniors who face major money problems can consult with an experienced Memphis bankruptcy attorney to determine what their best options may be.