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Why baby boomers may want to consider bankruptcy

On Behalf of | Jul 7, 2020 | Personal Bankruptcy

With the baby boomer generation nearing retirement or already into their post-career life, financial problems can be especially concerning. Unfortunately for many in this demographic, certain struggles can leave them with money-related woes throughout their golden years. For many in Pennsylvania, the problem is serious enough to consider legal steps to address the matter, such as filing for bankruptcy.

One common reason for this is that older individuals are more likely to give money to friends and family. This can reduce their own personal savings they may need for retirement, especially if the recipient never pays the money back. Additionally, payday loans are a common financial trap for baby boomers, and other common financial concerns include tax debt and debt from home equity loans.

Medical debt is a serious concern for those in Pennsylvania, especially if they are nearing retirement age. These balances are unexpected, and they can continue to accumulate if a medical need persists. Car loans, mortgages and credit card debt can leave someone looking to retire with bleak financial prospects as this is the time to start paying off balances and commit to saving for long-term needs.

Regardless of someone’s age, overwhelming debt is a serious concern. It can overwhelm an individual, wipe out savings and result in constant calls from debt collectors and creditors. When this happens, it may be helpful to consider Chapter 7 bankruptcy for the discharge of certain types of unsecured balances. There are other bankruptcy options as well for those facing foreclosure or those ineligible for Chapter 7 due to higher incomes. This process can allow consumers to reclaim financial security for the future.