According to USA Today number of American retirees filing for protection under the bankruptcy code has risen drastically in the recent years. USA Today reports that people 65 and older are filing for bankruptcy are the fastest growing segment of the population filing for bankruptcy. This phenomenon is attributed to the rising cost of health care, reduction in income and increase in cost of living.
Based on the article, retirees see the benefit in bankruptcy in that they will have more money to dedicate to their lifestyles and especially since Social security and retirement accounts are exempt from creditors. Additionally, many states, such as California, “homestead exemptions” which protects the equity that those 65 and older have in their homes. This means that senior citizens can keep their homes and still file for protection under Chapter 7 or 13. What’s more, many people avoid filing for bankruptcy due to the negative impact it may have on their credit score. However, credit scores are not a great concern for seniors because they will in all likelihood not be purchasing big items such a car or a home. Still, according to USA Today for every one senior who is filing for bankruptcy, there are two that should be filing and are not!
Our Orange County bankruptcy attorneys know the importance of living a worry free life, especially in the golden years of our lives. By contacting our office we can explain all the myths about bankruptcy away for you and after a brief evaluation determine whether you are a good candidate to file for bankruptcy or not. We can also provide you information on the current homestead exemptions in California. Call us at 714-542-2188 and ask to speak to our experienced Santa Ana bankruptcy attorney.