In Tennessee and across the United States, many senior citizens do not retire in style. Instead, retired seniors often live on low Social Security incomes or Social Security disability payments. Some seniors cannot afford to buy groceries unless they have food stamps. Additionally, many of these seniors experience overwhelming debt. Struggling with debt is challenging, especially if the person is near retirement age. Numerous seniors who are 65 and older face severe financial challenges.
Bankruptcy may present the only viable option to a senior who requires a fresh financial start. According to a lengthy study conducted by the Consumer Bankruptcy Project, 65-year-old seniors account for one out of every seven Americans filing for bankruptcy. Additionally, statistics show that 75-year-old seniors also experience heavy personal debt. According to Kevin Leicht, a University of Illinois sociology professor, many baby boomers worked for decades without having the necessary skills that would have qualified them to receive retirement pensions.
Social Security payments do not always provide ample financial support for seniors without traditional pensions or 401(k) plans. Mounting, uncontrollable debt exasperates the situation. A 60-year-old person planning for retirement may have to work until they are 70-years-old before they can climb out of their debt. Unfortunately, many seniors struggle financially because they do not understand bankruptcy laws. Plus, they do not know where to turn.
Some seniors shy away from filing for bankruptcy because they want to bear the responsibility of paying back their creditors without any outside help. However, Chapter 7 for individuals is one way to obtain debt relief. Consulting with a bankruptcy attorney might shed new light on how to cope with debt that never seems to end. With strategies that include bankruptcy, debt management and debt relief, a bankruptcy lawyer may help a client develop a practical financial plan.