Disproportionate number of baby boomers file for bankrutpcy
A surprising amount of baby boomers have been forced to file for bankruptcy in recent months.
According to a report from Fox Business, which cited statistics from a recent American Bankruptcy Institute study, 42 percent of all Americans who filed for bankruptcy were between 45 and 64 in 2008. In addition, the number of consumers between those ages who sought either Chapter 7 or Chapter 13 protection increased 65 percent from 2002 to 2007. Meanwhile, cases for younger Americans dropped 60 percent.
The report said baby boomers face significantly more financial worries, such as rising healthcare expenses and higher credit card debt, as well as the cost of caring for children and occasionally their parents. In addition, some of their retirement savings, which would be more significant than those for younger people, may have been wiped out by the economic downturn, the report said.
Chapter 13 filings would allow consumers to keep more of their assets while formulating a budget that would allow them to pay off their creditors over a five-year period, while Chapter 7 cases require the liquidation of assets.
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