Bastarrika, Soto, Gonzalez & Somohano, L.L.P.

Older Americans filing for bankruptcy at an increasing rate

When most people think of risk factors for financial trouble, age may not be the first thing that comes to mind. But recent figures show that older Americans may be seeking bankruptcy relief with increased frequency. New research from the Consumer Bankruptcy Project may have an impact on how New Jersey retirees look at their financial future.

According to the academic paper, more older people in the United States are filing consumer bankruptcies. Additionally, the percentage of those who are 65 and older among filers is at an all time high. One author in the paper noted that this is an indicator that elderly Americans may be struggling financially.

Many elderly Americans have had access to a relatively sizable safety net that includes Social Security, Medicare and Medicaid alongside corporate pensions. However, retirement plans can also be tied to the stock market. For those who depend largely on 401(k)s for income, market downturns can have a significant influence. Additionally, older Americans tend to be holding more debt than their younger counterparts; for example, 38 percent of those over 65 carry a mortgage.

The reasons for each individual can vary from medical debt to 401(k) vulnerability to simply not having adequate savings. However, the one thing that is clear from the research is that older Americans are filing for bankruptcy significantly more than other demographics. For New Jersey retirees facing financial challenges, the decision to file should be made in a careful, deliberate and legally sound manner. Talking about one's particular situation with a bankruptcy lawyer is a good step to take in these cases.

No Comments

Leave a comment
Comment Information
Rated by Super Lawyers - Jose I. Bastarrika -
Rated by Super Lawyers - Jerard A. Gonzalez -
Rated by Super Lawyers - Rising Stars - Cheryl Lin -
Rated by Super Lawyers - Rising Stars - Erin L. Smith -
Rated by Super Lawyers - Rising Stars - John T. Somohano -
Email Us For A Response

Contact A Lawyer Today

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Location:

3 Garret Mountain Plaza
Suite 302
Woodland Park, NJ 07424

Phone: 973-370-0997
Fax: 973-977-2021
Woodland Park Law Office Map

We've Moved! Please note our new address