If you are a New York resident approaching retirement age, you may be considering joining the large and growing number of baby boomers across the nation who are looking into bankruptcy protection. As reported by U.S. News, current trends in wealth inequality are contributing to the circumstances causing many individuals to retire under dire financial circumstances.
Like many other boomers, you may find that a bankruptcy filing provides relief from the pressures of debt. A petition may allow you to downsize and readjust your budget to fit within an upcoming reduced or fixed retirement income.
A study conducted by the Consumer Bankruptcy Project revealed that individuals who are 65 years of age or older represent one in seven bankruptcy petitions. According to the data published, the number of bankruptcy filers between the ages of 65 and 74 increased by 200% during the years between 1991 and 2016.
While the population of citizens over 50 is larger than other age groups, the data showed that the average age of bankruptcy filers was 48.5 for the study period ending in 2017. The researchers found that the most common reasons that caused older Americans to file for bankruptcy included medical expenses, job loss and insufficient income. Four out of every 10 respondents — regardless of their age group — stated that missing work due to medical reasons led to their bankruptcy.
It is not uncommon for individuals to struggle with paying their debts for some time before they begin to consider the relief that a bankruptcy filing may bring. The CBP data disclosed that six in ten baby boomers attempted to manage their debts for two years before seeking some assistance for relief.
This information is provided for educational purposes only, and should not be interpreted as legal advice.