Dave Ramsey, the financial guru, commented that 97% of those over 65 can’t afford to write a check for more than $600. Many people retired thinking that their standard of living would be unchanged or improved. For a large number of seniors, that has not been the case at all.
At one time, very few older Americans ever filed for bankruptcy protection. That is no longer true. Many seniors have found it necessary to contact a Bankruptcy Attorney In Puyallup Wa , generally because of circumstances beyond their control.
Medical Bills
Some people might wonder how those over 65 could end up drowning in debt because of medical bills. After all, don’t older people have health insurance under Medicare or retirement benefits? In most cases, yes, but insurance doesn’t pay it all. One heart surgery can leave the patient with a staggering amount of debt from the portion that wasn’t covered. Also, it may have been necessary to go outside the network.
Many common prescription drugs have had dramatic price increases. Health insurance may cover many prescription drugs but does not cover all prescription drugs. Seniors have discovered that the drug that is controlling their health problem has now become prohibitively expensive. Some resort to buying prescription drugs in Canada, India or elsewhere, paying for it themselves.
Credit Cards
How are these medical bills and drugs paid for? When savings are wiped out, people use credit cards. For seniors, this is often a desperation move. Supplementing a fixed income with a job may or may not be possible. At some point, the senior cannot pay the monthly bills and the collection calls and letters flood in.
Protecting the Home
The primary concern of many elders is protecting their home. It may be fully or mostly paid off. They don’t want to lose their home if they file for bankruptcy protection.
Homestead exemptions can be used to protect a certain amount of equity in the home. Washington allows those filing for bankruptcy to use either the state or federal exemptions. Washington has a generous homestead exemption of up to $125,000. The federal homestead exemption is only $23,675.
