The number of senior citizens filing for bankruptcy is five times higher than it was three decades ago, according to a 2018 report from CBS News. Men and women in this age group who need help because of overwhelming debt may contact a practitioner of Bankruptcy Law in Wellington FL for a consultation.
This isn’t only because the population of senior citizens is higher than it used to be. The percentage of people in this age group filing for bankruptcy is also higher. In 2018, it was more than 12 percent of all men and women filing for bankruptcy.
Medical Expenses
Why is this happening? One reason seniors increasingly must hire a practitioner of bankruptcy law in Wellington FL is the higher cost of medical care. On average, seniors now spend 20 percent of their income on health care, even though they have Medicare to cover most of their needs. The leading cause of personal bankruptcy across all age groups is medical expenses. This accounts for about 67 percent of filings each year, according to CNBC.
The Demise of Pensions
Another reason is the shift from company-sponsored pensions to 401K retirement plans. This puts much of the responsibility on the individual to save for retirement. Seniors living only on Social Security income may struggle with mortgage and rent payments as well as high utility bills.
High Utility Bills
The cost of electricity is steep in Florida, which is a problem since most residents rely a great deal on air conditioning for climate control. The average monthly electric bill in this state is about $126.
Scheduling a Consultation
It’s important to schedule a consultation with an organization such as Law Offices of Sean I. Koplow before starting to withdraw money from savings to make minimum payments on debts. Too many men and women also start using credit cards to pay for regular expenses, getting them further into trouble. In bankruptcy, retirement accounts are protected by law from creditors, and so is a certain amount of savings and real estate. There is no obligation to hire a lawyer after a consutlation. Click here to get started.
