Part of the American dream is being able to work hard and then enjoy retirement. Older Americans should be able to look forward to relaxing in their twilight, enjoying traveling and their grandchildren.
But a new study from the Consumer Bankruptcy Project shows us that the rate of seniors 65 and older who have filed for bankruptcy has tripled since 1991.
What is going on?
The study’s lead author, Deborah Throne from the University of Idaho tells us that the two main reasons are:
- Growing medical expenses as the cost of healthcare rise
- Lost income due to the late 2000s recession
She goes on to explain that older Americans that go through bankruptcy have a harder time recovering than someone who goes through it at 45 years old.
Older Americans see themselves drowning in debt, and they aren’t the only ones.
- 790,830 total bankruptcies filed
- 767,721 were non-business
- 23,109 were businesses
What Is Chapter 7 Bankruptcy?
Today we want to cover the basics of chapter 7 bankruptcy, one of the main two bankruptcy options, along with chapter 13.
Chapter 7 bankruptcy is the more common form of bankruptcy and is the quicker route for individuals, married couples, corporations, and partnerships.
The whole purpose of bankruptcy is to alleviate your debt obligations so that you have a chance to recover. As we discussed at the beginning of this article, the economic collapse ten years ago put many people in a bad place. Many people ended up in situations where they had major debts. When they were making a good income or had a successful business, these debts were not a problem.
If someone lost their job or they had to go out of business, they often found it impossible to pay their debts. This can be a scary situation, especially when creditors start calling or the bank attempts to foreclose on your home.
Filing for Chapter 7 bankruptcy puts an immediate stay order on all of the debt collectors, giving you a chance to breathe. You then work with an attorney to present a statement of all of your financial affairs, beginning with a list of all of your assets and debts.
Will you lose everything?
No, there are items that can be exempt from being taken, such as your home, vehicles, pensions, and personal belongings. The courts recognize how important these items are for people trying to get back on their feet.
Remember, this process is here to help you, not hurt you.
What To Do
The thought of bankruptcy may cause you to panic – don’t. With the right legal guidance, bankruptcy can be your path to a fresh start. When you need a chapter 7 bankruptcy attorney in Salt Lake City, contact Justin M. Myers, Attorney-at-Law, LLC by clicking here or calling us at 1-801-505-9679.
Justin will work with you throughout the entire process, making sure you get the best outcome possible. It is time to restart your life.