Senior citizens are one of the fastest-growing groups to seek bankruptcy relief. Not too long ago, it was rare to see a senior citizen in bankruptcy court. They typically had steady incomes and little in the way of debt. However, changes in Medicare as well as other economic problems have made senior citizens a fast-rising demographic group in bankruptcy. Checkett, Pauly, Bay, and Morgan answer some basic questions about senior bankruptcy.
What are the main causes of bankruptcy for senior citizens?
Medicine, medical treatment, and even large credit card balances have become common in senior citizen bankruptcies. The cost of medicine is always rising, especially for specialty medicines, and as people age, they become more at risk for falls, hospitalization for sicknesses, and surgeries.
Seniors can also be victims of many scams, especially on the Internet, where their demographic is often targeted. These money-stealing scams can leave many seniors in financial distress.
Can someone with dementia file for bankruptcy?
It is possible for someone with dementia to file bankruptcy through the use of a power of attorney. The holder of a power of attorney and their legal counsel as well must be very careful to be sure that the power of attorney authorizes bankruptcy filing, and that a full and accurate disclosure of all debts and assets of the bankruptcy debtor is made to the court.
Will filing for bankruptcy affect my credit?
Anytime you file for bankruptcy, it will negatively affect your credit. An attorney can help you weigh the pros and cons to see which is the best option for you.
Related Post: Will My Bankruptcy Affect My Spouses’ Credit?
How do I know if I should file for bankruptcy?
It is important to remember that much of your income is likely protected, including social security benefits. Bankruptcy is a better option for seniors whose wages can be garnished for unpaid debts. The best action is to consult an attorney who can help and has experience dealing with senior bankruptcies.
Like all other cases, a senior citizen filing bankruptcy must be very careful to make a full and accurate disclosure to the court and to use competent and experienced legal counsel.
Contact Checkett, Pauly, Bay, and Morgan
Our experienced attorneys have decades of experience dealing with bankruptcies and can help navigate your personal situation. If you are looking for bankruptcy advice in Southwest Missouri, contact us today or call us at (417) 358-4049.