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Medical Bankruptcy Growing Problem Among Seniors

Thu, 03/03/2005 - 12:00am — Karen Stevenson
Description: 

Discussion about a bill before Congress to strengthen the bankruptcy law is stimulating a flood of disturbing stories and statistics about the rise of bankruptcies and mushrooming debt among seniors. Research done by the Consumer Bankruptcy Project at Harvard indicates that bankrupticies among people age 65 and older are growing at a much higher rate than among younger age groups, and that 48% of bankruptcy filings for those age 65 or older are related to medical bills. If you Google the web for "Bankruptcy" and "Seniors", you will find dozens of recent articles describing people who racked up unmanagable levels of debt for reasons like the following:

* Medical bills not covered by Medicare, often prescription drugs.
* Loss of pension and Social Security income when a spouse dies.
* Loss of pension or health benefits when a former employer eliminates or reduces retiree benefits.
* Inability to continue working after developing a medical condition.
* Cost of helping out children who had lost jobs or incurred debt, including helping out with the children's medical bills.

Seniors often deal with these costs by refinancing their homes or using credit cards. Eventually any retirement nest egg and home equity they may have had can be wiped out.

Discussion about a bill before Congress to strengthen the bankruptcy law is stimulating a flood of disturbing stories and statistics about the rise of bankruptcies and mushrooming debt among seniors. Research done by the Consumer Bankruptcy Project at Harvard indicates that bankrupticies among people age 65 and older are growing at a much higher rate than among younger age groups, and that 48% of bankruptcy filings for those age 65 or older are related to medical bills. If you Google the web for "Bankruptcy" and "Seniors", you will find dozens of recent articles describing people who racked up unmanagable levels of debt for reasons like the following:

* Medical bills not covered by Medicare, often prescription drugs.
* Loss of pension and Social Security income when a spouse dies.
* Loss of pension or health benefits when a former employer eliminates or reduces retiree benefits.
* Inability to continue working after developing a medical condition.
* Cost of helping out children who had lost jobs or incurred debt, including helping out with the children's medical bills.

Seniors often deal with these costs by refinancing their homes or using credit cards. Eventually any retirement nest egg and home equity they may have had can be wiped out.