Debt sees no faces. It has no preference for young or elderly. There is no discrimination among income levels. Debt plagues far too many in this country today. However, one groups is particularly vulnerable to debt problems. That is lower income seniors. These days, debt among seniors increasing bankruptcy filings.
Debt Among Seniors Increasing Bankruptcy Filings
There are a number of reasons more seniors of filing for bankruptcy. First, bad mortgages. Many seniors today bought hopes prior to the housing crash in 2008. A lot of these mortgages carry scary interest rate terms. Adjustable interest rate mortgages are one example. Another is interest only loans that suddenly explode when the introductory period is over. Once the principal payment is required with the interest, many people can no longer afford their homes. Now facing foreclosure, many seniors are filing for bankruptcy to help.
Another reason seniors are facing significant debt is because of medical bills. Out of pocket medical expenses are a leading cause of bankruptcy filings among Americans. Unfortunately, many seniors do not have adequate medical coverage. Even Medicare cannot guarantee affordable treatments and medicines. Some seniors do not have enough monthly income to sustain themselves. Adding in the burden of an unexpected medical bill makes it worse. Medical bills begin to pile up and put a drain on finances.
You may have seen some elderly people returning to work. It isn’t uncommon for retired people to return to work simply to make ends meet. The cost of living isn’t what it once was. Many people simply can’t afford any extra payments outside of their essential living expenses. In such cases, even a small amount of debt can become burdensome.
Thankfully, bankruptcy can provide debt relief. Bankruptcy can eliminate payments and protecting homes from foreclosure. Contact a bankruptcy lawyer Dayton OH to discuss your options.