The Elderly And Rising Bankruptcy
August 2, 2008 · Print This Article
With the down turning economy and subsequent credit crunch a surprising trend has emerged. Bankruptcy claims filed by the elderly has seen a staggering climb. This is a trend that would have been unheard of just a decade ago but with the rising cost of medical bills and prescription medicines along with inflation and falling home prices, the elderly are having a harder time then ever making ends meet.
According to the AARP between the early 1990s and 2007 those over 65 years of age filing for bankruptcy rose over 150 percent. What is even more surprising is the 433% rise of seniors between 75 and 84 who needed to file.
There are several issues at play here but medical debt is believed to be the major culprit. Where social security was once able to cover medical bills along with the cost of living it is just no longer enough. The elderly are having to shell out more and more money for what should be covered by either their social security benefits or by their retirement funds.
The fact is, many of America’s elderly are in debt made worse by their inability to recover. 2005 saw a decline in overall bankruptcy claims thanks in large part to new laws designed to accomplish just that. Despite this 2007 saw an increase in filings primarily by senior citizens.
Fear of inflation and rising cost of food and medicine are affecting everyone but perhaps the most susceptible to these increases are the elderly population. This is because many of these seniors are unable to earn a living either due to medical conditions or a lack of skills. For those seniors who declare bankruptcy they will find it virtually impossible to ever fully recover.
While the foreclosure crisis and credit crunch has many focused on the middle class the problems of the elderly are increasing and should not be overlooked.
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