Between 1991 and 2019, the number of seniors that declare bankruptcy has risen from 2 percent to 12 percent. This is an incredible rise in numbers, and it unfortunately is a reflection of the reality of rising health and care costs. Of working aged individuals in a recent study, of the top five monetary concerns that people have, three of them are related to retirement.
Although a lot of companies encourage retirement plans and will even help provide with planning, getting ready for retirement is not always as simple as it sounds. Even with savings, many people that enter their senior years are unready for the expenses that they are likely to incur.
Bankruptcy is a possible solution to this. It’s a legal process where someone who has accrued debt can have some of their burden relieved. Bankruptcy can be detrimental to an individual for years afterward, though. When a senior goes through this process, there’s a good chance that they will not live long enough to come out on the other side. Rather than having the retirement that they’ve dreamed of, they end up mired down in legalities.
Bankruptcy can occur for a lot of different reasons and it isn’t necessarily the fault of the person who now needs financial help. There are many factors that can contribute to it. Some of the more common ones are weaker or vanishing pension plans, fewer people entering positions that have strong unions, and a shift of responsibility for retirement planning. Although 401(k) plans can be great tools, they are underutilized and often are not as competitive as the traditional pension plan.
In some cases, a senior falls into bankruptcy because of financial abuse or theft. Financial abuse is a form or senior abuse. Becoming acquainted with how to spot the signs will be beneficial to your family.
Planning for senior care is scary, especially when money is an issue. You might be surprised to find that there are less expensive options out there to take advantage of. Although the traditional nursing home is quite expensive, things like in-home care can provide a high level of care at a fraction of the cost.
That’s what we specialize in–providing professional level care at a great value. If you have questions about how Paradise In-Home Care can help you and your family, get in touch with us. We offer a free consultation service that can help you get started in the right direction and find exactly the care that you need without going broke.
If you do find yourself in a situation where you might be considering bankruptcy, please get in touch with an attorney that specializes in this. They will be able to give you the guidance and direction needed to make good choices. It’s a complicated area, and working with a skilled and knowledgeable attorney will be the smartest choice. Check out your local listings for a look at attorneys that specialize in bankruptcy law. You might even find that there are better options out there to help restore your family’s finances.