About Me
“ Craig D. Robins, Esq., has been a practicing Long Island bankruptcy attorney for over twenty-four years ”
Bankruptcy and the Elderly
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Written by Craig D. Robins, Esq.The economic times are tough for people of all ages, but senior citizens and the elderly are perhaps impacted the most. The weak economy is preventing many seniors from earning the income that they need to make ends meet.
I previously wrote that according to a report by AARP, the rate of personal bankruptcy filings for those ages 65 and older grew by 125 percent, while the bankruptcy rate of senior citizens ages 75 to 84 grew by an incredible jump of 433 percent.
I regularly see many senior citizens in my Long Island bankruptcy practice who are barely able to pay their bills. These seniors are often living on just pensions and Social Security, yet juggle soaring medical bills, credit card payments and rising food and gas costs. Some must deal with mortgage payments as well. See Many Long Island Seniors Suffering From Debt .
Many Seniors Are Not Financially Equipped to Handle Retirement
Several months ago I had the opportunity to talk with nationally-known author and economist Thomas J. Mackell, Jr., an expert on the economics of living in retirement. See my post: Former Federal Reserve Bank Chairman Points Out Disturbing News About Americans and their Pensions.
According to Mr. Mackell, our country’s retirement systems are insufficient to cover retirees’ financial responsibilities, and as a result, seniors load up on credit card debt and incur medical bills that they cannot afford to pay for.
The stock market, which fell during the past decade, also had the effect of eroding the value of pension plans and retirement accounts, making the situation for many seniors even bleaker.
Senior Citizens Should be Debt Free in Retirement
It’s very hard to retire on a fixed income when you owe a substantial amount of money. I’ve counseled many clients who are well past retirement age, and who are working just to pay their credit card bills.
Many seniors on Long Island are also coping with the high cost of living here. Fortunately, for many of them, I have been able to elinate all of their credit card debts, medical bills and other financial obligations.
Some Seniors Have Gambling Debt Which Can be Eliminated with Bankruptcy
Seniors, with lots of time on their hands, are often lured by free bus rides to the Casinos, where some have gambled away their hard-earned savings. It’s sad, but there are a lot of seniors who have incurred significant debt from gambling.
What seniors should know is that gambling debt is generally dischargeable in a Chapter 7 bankruptcy fling.
For Senior Citizens, Bankruptcy Is Often the Solution to Overwhelming Debt
A great number of seniors have been able to get a fresh new financial start by filing for Chapter 7 bankruptcy relief. This past August, I wrote about how Senior Citizens Are Filing Bankruptcy In Record Numbers .
My office regularly counsels and advises Long Island seniors about debt relief options including bankruptcy.
One particular aspect that we help senior overcome is that they are ashamed of their debts and financial situation — much more so than our younger bankruptcy clients.
However, when you file for bankruptcy, your debts disappear, the creditors stop calling, and your life returns to normal. Seniors need this relief more than most other segments of the population.
If you know of a senior with debt problems, consider recommending that they discuss their situation with an experienced bankruptcy lawyer.
