Bankruptcy Filings Among the Elderly Are Rising

The economic conditions of the past few years have placed many families in difficult financial circumstances. Few demographic groups have been spared, and our New York elder law attorneys know that the situation has affected many seniors in our area. Echoing that trend, a forthcoming article in The Elder Law Journal explains how there has been a sharp increase in the number of elderly community members filing for bankruptcy.

According to the latest data available, those over sixty five years old account for seven percent of all bankruptcy filings. This is a marked increase from rates over the past two decades. For example, senior citizen bankruptcies represented only four and half percent of the total in 2001 and roughly two percent in 1991. The new research on the topic found that medical debt was one of the most commonly cited reasons for the filings by these community members. The often staggering cost of care required by seniors makes it a virtual necessity for all local residents to conduct proper New York long-term care planning to ensure that they are not financially devastated by these medical and caregiving bills.

The new research on elderly bankruptcies found that one of the main reasons why seniors find themselves facing financial struggles is an unwillingness to ask others for aid with fiscal questions. All local seniors who are worried about their financial well-being should remember that assistance is available. An experienced New York elder care lawyer is able to help local families plan ahead for long-term medical care. This preparation provides the peace of mind that comes with knowing that one’s finances will be protected regardless of what the future holds.

For those who plan ahead, there are often many options to protect family assets from long-term care costs. Those who conduct planning early enough may find that long-term care insurance is a viable option to protect themselves. Not only does this insurance protect assets and income, but it also pays for at-home care so that seniors can maintain their preferred lifestyle for as long as possible. Even if this insurance is out of reach, other legal tools–such as a Medicaid Asset Protection Trust–can be used to protect family assets while ensuring that care will be available when necessary.

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