Richard J. Shurtz, Attorney at Law

Domestic Violence
Protection Orders

Telephone: 425-329-3601
Toll-Free: 888-705-3360

Why people seek bankruptcy protection during retirement

Ask 100 people what their plans are for their retirement, and it is likely that they will give 100 different answers. Few people, however, would say that seeking bankruptcy protection is on their list of goals to accomplish during their retirement. Unfortunately, that will be the outcome for some older people in Washington, and the reasons behind that choice will sometimes be out of their control. The following are some of the more common reasons why older Americans face bankruptcy.

Medical debt is a significant factor, and can lead many people to seek bankruptcy in their later years. According to a study conducted at Harvard University, around 62 percent of personal bankruptcies are filed because of medical debt. Even more distressing is the fact that of those who filed, 72 percent had some form of health coverage.

Another serious concern for older Americans is the risk of falling victim to fraud. There are a great many unscrupulous people who look for vulnerable groups of people to exploit. All too often, older people are a prime target. Statistics on the issue provide no clear picture of the problem, because many older people do not report fraud out of shame.

For those who are at or nearing retirement age, it is important to understand the factors that can lead to financial turmoil. Avoiding bankruptcy is always the goal, but there are cases in which personal bankruptcy is the only feasible course of action. Emerging from the bankruptcy process can help Washington residents move past their financial strife and enjoy their golden years.

Source: Forbes, "Three Best Ways To Go Broke In Retirement", Robert Laura, June 28, 2017

No Comments

Leave a comment
Comment Information