Bankruptcy INK

A new study shows that bankruptcy filings in Illinois, and around the USA, are rising fastest in the over 55 age group. This surprising news has lead many to speculate as to the reasons behind this trend. The consensus is that this is due to, “rising mortgage debt and medical expenses.” Kathleen Day, Washington Post.

The elderly are increasingly falling into debt to support the ever growing prices of health care. Fortunately for the elderly, bankruptcy is there to provide relief in these trying times. “[T]he new bankruptcy law has the safeguards to give relief to those truly in need because of health or any other difficulty.” Ed Yingling, Head of the American Bankers Association. Nonetheless, even with the aid of bankruptcy, the elderly still struggle to make ends meet, because their medical needs persist.

This study should be taken as a reminder for the need to be prepared for retirement. The increasing costs of health care necessitate a well structured savings plan that can handle any contingency. Bankruptcy will be there in the event that these costs become too burdensome to bear, however steps must be taken now to ensure that this is only a last resort.