Pelley Law Office LLP
Dallas Office
Plano Office
Sherman Office

No Charge For Initial Consultation ($250 value)

Menu Contact

Over 80 Years Of Combined Experience

View Our Practice Areas

More seniors in debt, filing for bankruptcy

In the past few years, there have been many reports showing that the economy is as hard on senior citizens as anyone else. In 2010, for example, the number of Chapter 7 and Chapter 13 bankruptcies filed was at the highest it has been since 2005, which is the year that the bankruptcy law changed. Seniors between the ages of 55 and 64 made up 27 percent of those filers, and those over 65 accounted for 8.3 percent.

What causes seniors to face overwhelming debt? In the past, the main culprit was always medical bills. While this continues to be a principal factor, credit card debt, interest and fees have taken the number one spot. More than 60 percent of people over 60 said that they were drowning in credit card debt. In part, this is because older Americans have begun to accept credit cards as a way to pay back the debt they accrue from medical bills and other significant costs.

Seniors are also living longer than ever before, which means they pay more for healthcare and may refinance their homes more often in order to pay off debt. Unlike other borrowers, Seniors usually do not have a strong income flow and must rely on Social Security checks and other monthly benefits to pay all of their bills and taxes.

The bottom line is that seniors face the same debt as many other age groups and often do not have the resources to combat it. Bankruptcy is more than a positive option for them; it is often the only option. Through bankruptcy, many senior citizens can discharge all of their debts and let their pocketbooks breathe easier once again.

Source: AARP Bulletin, "Bankruptcies Up for Older Adults," Bob Calandra, Jan. 6, 2011.

No matter what your age, bankruptcy may be a good option for you. Learn more by visiting our pages on Chapter 7 bankruptcy and Chapter 13 bankruptcy.

No Comments

Leave a comment
Comment Information

Awards & Recognition

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 Locations

Plano office
Sherman office
Dallas office

Plano Office
1312 14th Street, Suite 100
Plano, Texas 75074

Phone: 972-608-0335
Map & Directions

Sherman Office
905 North Travis Street
Sherman, Texas 75090

Phone: 903-813-4778
Map & Directions

Dallas Office
100 Crescent Court
Suite 700
Dallas, Texas 75201

Phone: 214-733-1775
Map & Directions