According to an article in Newsweek , the “over-55 crowd” is now the most likely to file for bankruptcy. A confluence of events lead to this, and here are some of the causes: they are helping their kids and grandchildren, their homes have dropped in value, and the generation as a whole has been known to carry a lot of debt.
The article in Newsweek describes the situation surrounding the group by saying:
“Older Americans are heading into and through retirement with a boatload of debt. They’re carrying everything from mortgages and home-equity loans to big credit-card balances, and many are finding the burdens harder and harder to bear. In the last eight years, the over-55 crowd has become the age group most likely to declare bankruptcy, according to the AARP. The statistics are unsettling. More than half of people 50 and older who carry debt spend most of their monthly income paying it down. An AARP study released before the worst of the current recession hit found that a quarter of those folks spend more than 75 percent of their income on their debts. Americans 65 and older who carry credit-card balances saw their average balance rise to $10,235, up 26 percent from 2005, according to Demos, a public-policy research group.”
The good news for this age group is that bankruptcy can be a good option for them. The article also went on to say that bankruptcy could benefit these individuals. It said, “Assets in IRAs and other retirement accounts are protected from bankruptcy judgments up to $1 million, so people with big medical debt can declare bankruptcy and get to keep their nest egg. Depending on the rules of their state, they might be able to hang on to their home, too.”
As you probably know, Texas is one of the states where you will be able to keep your home. It’s a shame that many older people are struggling with their debts. In many cases they don’t have to. They can most likely eliminate many of their debts, and if they can’t eliminate them, they can have the debts restructured to a more manageable level.
If you or an older friend or relative falls into this category, don’t struggle underneath all of your debts. By filing bankruptcy, a huge weight will be lifted and you can move on with enjoying your retirement. Anyway, please contact a bankruptcy attorney today to find out more.