If you are like most Virginia residents in their 60s and older, you never expected to be at this stage of your life still struggling to make ends meet financially. Yet, if this is your everyday reality, you are far from alone. New data released from the Consumer Bankruptcy Project shows that more people 65 and older are filing bankruptcy today than in the past.
According to Fox Business, in 1991, people in this age group represented a mere 2.1 percent of all bankruptcy filers. Today, they comprise 12 percent of all people who file for bankruptcy relief. In addition, the number of seniors who have filed for bankruptcy has doubled since 2013.
Several factors are likely playing into the increase in baby boomer bankruptcies and the skyrocketing out-of-pocket costs associated with medical care is one of those factors. This increased cost in health care also comes at a time in baby boomers' lives when their income is reduced. This group was already in their 50s or older when the recession hit, giving them less time to work and recoup their losses compared to people 10, 20 or more years younger than them. The study also indicated that the average bankruptcy filer 65 years old or beyond has more than $17,000 in debt.
If you would like to learn more about how you or a family member nearing or at retirement age might get help for the rising mound of debt they face, please feel free to visit the baby boomer debt relief page of our Virginia bankruptcy website.