Seniors Filing Bankruptcy Soaring

A new study commissioned by the AARP shows that between 1991 and 2007, the rate of bankruptcy filings more than doubled among Americans age 65 and older. The

filing rate for people between 55 and 64 was up 40 percent. Among those 65 to 74, it jumped 125 percent. Harvard Law professor Elizabeth Warren, who co-authored the study says many seniors are approaching retirement age saddled with debt. "Instead of a nest egg, they have an anchor" she says.

Many who file express a sense of relief. However, filing when you’re  40 is very different than when you’re 65,  Warren said. When you are younger, you still have many earning years left to rebuild. At age 65 most have much less earning potential even if they want to work.  Social Security can’t keep up with the rising costs of medical care and consumer goods. This makes seniors very vulnerable.

Scott Drake talks with Elizabeth Warren

Comments

[crystal is filing bankruptcy]

Interesting facts about seniors. Most have not prepared for retirement and can not survive on only social security. At least with bankrutpcy it does not usually mean you lose everything. Your cars and home are typically safe from seizure.

[jovan]

I am interested in how these percentages apply today. I can only imagine they are much higher.