Even seemingly successful individuals can suddenly find themselves struggling with debt. Back in 2007, many successful investors experienced a reversal of their fortunes. Because such individuals had to borrow so much money, many of them could no longer afford to pay their debts.
While the economy is now doing much better, individuals continue to struggle to pay their bills. This especially applies to our elderly population. A Washington Post story highlights that many senior citizens are currently facing insurmountable debt.
Senior citizens turning to bankruptcy
One elderly individual found that her Social Security check was not enough. Her budget was not allowing her to pay for health care, medicine, and rent, so she used credit cards to buy food and clothing.
We know what issues arise from reliance upon credit cards to pay bills. Eventually, credit card debt becomes due. A missed payment can result in exorbitant interest rates and penalties. The above individual stated that Chapter 7 bankruptcy saved her from the aggressive actions of creditors.
Senior citizens are overall facing a period of reduced income and increased healthcare costs. A large portion of the senior population has a negative net worth. These circumstances have led to an increase in bankruptcy filings by individuals over the age of 65. Such a situation is not likely to change soon seeing that the number of senior citizens in Maryland and across the U.S. is increasing.
Where to turn for financial advice
Knowledgeable bankruptcy attorneys strive to help individuals that worked so hard for their money to not end up in poverty. Attorneys can advise individuals concerning their financial options, and recommend what type of bankruptcy might work best.
Although a Chapter 7 bankruptcy filing will not resolve every financial issue, it can provide struggling individuals a fresh start.