The Great Recession supposedly ended 10 years ago, but its effects still linger. One troubling economic development is the steep rise in bankruptcy filings by senior citizens, some of whom are living entirely on Social Security retirement benefits and struggling to get by. Bankruptcy Lawyers in Wetumpka, AL can help by completing the paperwork allowing these men and women to discharge the debt they cannot pay.
Retirement Savings and Income
Most companies no longer provide retirement pensions for their workers. Instead, employees are encouraged to set up 401(K) retirement plans to which their employers contribute. This leaves men and women at risk of investment downturns. In addition, depending on the Medicare plan the individual sets up, a certain amount is deducted from the monthly Social Security payment. This leaves even less to live on.
Mortgages and Wages
Nearly 40 percent of people age 65 and over still have a mortgage to pay. Many men and women in middle age have ended up in low-paying jobs instead of the steady middle-class income that was more prevalent in years past. Some have had to take on two part-time jobs instead of one full-time position, which may mean not having healthcare provided by the employer. Also, even when employers provide healthcare now, it generally costs their workers a great deal more than it used to.
Stock Market Losses
When an incident like the Great Recession develops, older men and women do not have a lot of time left to rebuild their savings. If they lose a large amount of money during a stock market crash, they may never be able to generate that amount again. A serious medical issue makes the situation even worse. They may want to consult with an organization like Courtney & Mann LLP about bankruptcy options.
Protected Assets
Retirement funds are protected during bankruptcy, so middle-aged individuals and seniors are encouraged not to touch that money to pay creditors. A significant portion of a senior’s assets also are protected by state exemptions. Although seniors may dislike the idea of consulting Bankruptcy Lawyers in Wetumpka, AL and not paying back all the money they owe, it is sensible financially to keep that money for the future.
