With bankruptcy filings at their highest levels since 2005, Massachusetts has seen a significant rise in its Chapter 7 and Chapter 13 personal bankruptcy filings. The number of filings increased 16 percent from 2009, compared to a 9 percent increase nationally.
Those 65 and older are the fastest growing demographic that is filing bankruptcy. While unemployment, underemployment, and the declining real estate market can continue to be blamed for many of the increased filings, the elderly face different challenges.
Job loss is the biggest trigger for younger people to file bankruptcy. They often rely on credit cards to pay for food, gas, and other everyday expenses. Eventually, credit card debt and medical expenses pile up and cause them to seek debt relief through bankruptcy.
In addition to the newly-unemployed, filings are now increasing for many people entering retirement. With their former income reduced, some retirees are finding it impossible to keep up with their daily expenses and ongoing debt.
Increases in the cost of food, utilities, and gas also can have a huge impact on those who live within fixed means, and is sometimes the last straw for those barely able to pay for their basic needs. Many elderly people have difficulty finding employment again, and don't have the capacity to earn additional money when the cost of necessities increases.
While health issues and medical debts are also contributing to bankruptcy filings by the elderly, credit card debt among the elderly has also risen, with a median of $22,562 being owed to credit card companies among filers 65 years and older.
Unless and until the economy improves, a decline in bankruptcy filings does not seem likely, and may be the only solution for those whose situations make it impossible to meet their financial obligations. For those who are experiencing financial difficulties, it is best to contact a bankruptcy attorney to discuss their options.
