Technically, bankruptcy affects people across all age demographics. But some studies have found that bankruptcy rates for those who are 55 years old and older have gone up dramatically in recent decades. The highest increase was for those who are 65 years old and older. This shows that it is a growing concern for older couples and individuals, who are filing far more often than they used to be.
Bankruptcy at a later age can have significant ramifications on a person’s life. They may be preparing for retirement. They may be drafting an estate plan and leaving their assets to beneficiaries. A bankruptcy filing can be complex and there are many factors to consider when people want to protect their financial future. Bankruptcy can create a positive financial picture moving forward, but it is important to know exactly how it will impact couples at this age.
Why is this happening?
One of the top reasons for a higher rate of bankruptcy filings for older couples is simply medical debt. As people get older, medical concerns mount. These can be very expensive to treat in the United States, and not everyone has health insurance or will be covered by the policy that they do have.
Again, medical debt is not exclusive to older individuals. Younger people may have diseases or injuries, and medical debt is always listed as one of the top reasons for bankruptcy filings. But it can be especially an issue for people as they age, helping to show why they may have a more precarious financial situation.
Your legal options
If you find yourself facing debt at this age, you do have legal options. Chapter 7 and Chapter 13 bankruptcy work differently, but they may help to eliminate some of these debts and create the positive financial future you are looking for. Just be sure you know what steps to take.