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The unfortunate rise in gray bankruptcy

On Behalf of | Oct 29, 2018 | Firm News

If you are a North Carolina senior facing overwhelming debt, you are not alone. Far too many of today’s seniors face the real possibility of bankruptcy as their only way out. In fact, “gray bankruptcy” statistics have become alarming in recent years. While only 2.1 percent of bankruptcies in 1991 represented those filed by seniors, today the percentage has skyrocketed to 12.2 percent.

Unfortunately, many factors have come together to form a perfect financial storm for seniors such as you. These factors include the following:

  • You must wait longer to collect Social Security benefits.
  • You must pay far higher medical costs.
  • You must contend with ever-increasing Medicare coverage gaps.
  • You likely must contend with ever-increasing debt amounts, particularly with regard to your credit cards.
  • You likely have not been able to accumulate much savings.

Catastrophic health costs

No one need tell you about the health care cost crises facing America today. Statistics bear out the fact that if you must rely on Social Security as your only source of income, you could spend as much as 41 percent of your check on your doctor visits and prescription medications. Alternatively, you may already be in the position of having to choose whether to buy medicine or groceries.

Savings decline

Such catastrophic health care costs are the number one reason why seniors like you have less savings than ever before. Again statistics tell the tale. Today, families headed by a senior have a median lifetime savings of $60,000. Even more frightening, for those senior-headed families in the lower 25 percentile bracket, savings amount to only $3,000.

In all this financial chaos, bankruptcy represents a still viable option for you. Do not make the mistake of fearing that filing bankruptcy evidences a black mark against your character. It does not. If you have no other way to get out from under your crushing debt load, do not hesitate to speak with an attorney about filing bankruptcy.

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