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More individuals nearing retirement looking to file bankruptcy

For many Colorado residents, part of the American dream they grew up believing in was finding a good job that would allow them to save enough money to live comfortably during retirement. Unfortunately, this is not becoming a reality for many individuals, who have been forced to work during their retirement in order to deal with the financial challenges burdening them.

While retirement is typically a period where individuals have few debts, the statistics show that individuals on the verge of retirement now carry four times as much debt in the past two decades. Indeed, both the percentage of those carrying debt, and the amount of debt itself, has increased substantially over the past two decades.

This, in turn, has caused a significant rise in the numbers of individuals who expect to work past the age of 65, with a recent poll showing that 82 percent of those 50 or older believing they would work after retirement. Individuals are often not capable of paying of their increased debt load, and therefore individuals not only have to work longer, but deal with higher interest rates and fees that cause other financial problems.

Faced with the increased debt, many over the age of 65 have found bankruptcy an effective way to eliminate debt. Indeed, the fastest-growing segment of those filing for bankruptcy comes from this age group.

Bankruptcy is effective because it can clear away a person's unsecured debt, such as the debt from credit cards or medical bills. This type of debt can be very burdensome to those over the age of 65, who may not have the income that would otherwise allow them to make their monthly payments.

Accordingly, bankruptcy is not just an option for younger individuals, but individuals of all age groups. Debt does not discriminate based on age, after all, and therefore individuals who are approaching or in retirement should seriously consider whether bankruptcy may be an effective option for them.

Source: Time, "The staggering statistic threatening your retirement," Dan Kadlec, April 7, 2014

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