When you’ve gotten buried under piles of unpayable debt, one legal remedy is to file for bankruptcy status. Put plainly, bankruptcy means that you have been deemed legally unable to pay certain debts to creditors. This solution is often seen as a last resort for debtors, but in many cases, it is an effective solution to a person’s debt problems.
Recent Research Regarding Elderly Bankruptcy
A recent study published by the Social Science Research Network suggests that a new trend is on the rise. Older Americans over the age of 65 are increasingly being forced to file for bankruptcy. The study highlights the drastic 204 percent increase in the elderly filing for bankruptcy from 1991 to 2016. Now, researchers are looking deeper into this concerning trend to learn why elderly bankruptcy is on the rise.
Explaining the Trend in Cherry Hill, NJ
After examining data gathered from the Consumer Bankruptcy Project, social scientists became aware of numerous factors that are contributing to the elderly bankruptcy trend. The most common reasons for filing included debt incurred as a result of:
- Uninsured health care costs (hearing aids, dental procedures, eye exams, extensive care)
- High health insurance copays
- Lowered income
- Loss of employment
- Failing to account for increasing health costs in retirement plans
- Increasing debt over the years
Increasing Health Care Costs in Haddonfield, NJ
One of the most significant reasons that citizens 65 and older are claiming bankruptcy at double the rate they were 25 years ago is because of extraordinarily high health care costs. The majority of citizens this age has Medicare coverage, but this government health care does not cover everything. Health problems that come along with aging, such as a loss in hearing and vision, result in unexpected costs that are usually not covered by Medicare. In other situations, extensive medical treatment for conditions like cancer may be necessary. Many of these types of situations require copays, deductibles or other fees that are simply unpayable by retired seniors. Injuries may also cause an elderly citizen to lose their jobs while further complicating their situation. In one study conducted by the Kaiser Family Foundation, out-of-pocket health expenses consumed a whopping 41 percent of the average social security income of elderly Americans in 2013.
Contact a Cherry Hill Bankruptcy Attorney for a Consultation About Elderly Bankruptcy in New Jersey Today
If you are struggling with debt, you may need a fresh start financially. An experienced bankruptcy and debt relief attorney can help you explore your options and determine the best course of action for you, your family, and/or your business. The experienced New Jersey bankruptcy lawyers at The Law Office of Joel R. Spivack understand the nuances of NJ and federal bankruptcy laws, so we can help you protect your interests. Call us anytime at 856-488-1200 or fill out the online contact form to schedule a confidential consultation. We have an office conveniently located at 1820 Chapel Avenue West, Suite 195 Cherry Hill, NJ 08002.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.