Bankruptcy is something that in the past was common for the younger generations, but older individuals usually avoided it. However, a new trend is seeing more seniors file. This is something that has gotten the attention of experts who want to know why older adults are filing bankruptcy more often, according to Forbes. So, why are more seniors heading to bankruptcy court in Alabama and across the nation?
There are several reasons that create the perfect atmosphere for older individuals to find themselves with financial struggles. To begin with, rising medical costs play a huge role. As you age, you have more need for regular medical care, oftentimes more expensive medical care as well. With the current state of the medical industry meaning care costs more now than ever before, it is no wonder it is taking a toll on seniors.
Another problem is the high number of financial scams that prey on the elderly or older population. These scams take people for large amounts of money every year. All it takes is one scammer to get a large chunk of your income or savings and you are headed for financial difficulties.
Finally, creating the perfect atmosphere for trouble is the lack of pension plans. In the past, you could rely on a good pension after retirement to carry you through your golden years. These days, though, most employers have abandoned the idea of a pension plan in favor of less secure options, such as 401Ks. This puts seniors on shaky financial ground as soon as they retire, which only leads them on the path to bankruptcy down the line. This information is for education and does not constitute legal advice.