Posted by David Leibowitz on March 30th, 2009 in Bankruptcy, Chapter 7, Medicare, Reverse Mortgage, Senior citizens
More and more seniors are facing bankruptcy. In 2007, Americans 55 and older accounted for 23 percent of the more than one million Americans who filed for bankruptcy. This is up 300% since 1991. Bankruptcy is increasing among seniors more than any other age group. Bankruptcy has increased by 400% for for seniors ages 75 to 84. Lakelaw has seen even more senior citizens facing bankruptcy in the past few years.
Why are seniors facing bankruptcy?
- Social security and retirement benefits are inadequate
- Seniors have exhausted their savings
- Equity in seniors’ homes has been eroded
- Seniors have used credit cards to live and now are being sued by credit card companies
- Seniors have major medical and pharmaceutical expenses beyond that which is covered by Medicare
- You’ve worked hard all your life and tried your best. Bankruptcy is not shameful.
- If you have equity in your home, you may be able to keep your home for the rest of your life with a reverse mortgage
- If you have life insurance, you may be able to get some money through a life settlement contract
- You should not be ashamed to seek assistance from public and private agencies including religious organizations
- You should not be ashamed to seek assistance from your family
- Credit cards are not an asset – you can’t live on your credit cards – cut them up and throw them out if you can’t pay monthly.
Lakelaw shows particular consideration to the needs of senior citizens with limited needs and will often provide bankruptcy services for them at reduced fees.