Why are all those baby boomers filing bankruptcy? Isn’t it just for the very young and old?

According to the American Bankruptcy Institute (ABI) 42% of bankruptcy filers were between the ages of 45 and 64 in 2007.  Apparently the baby boomers are filing faster than any other age group and the number of  boomer filers rose 65% from 2002 to 2007.

If you thought that bankruptcy was just for the irresponsible young or for older people who are retired and without an income then you would be wrong.  In fact bankruptcies for younger filers has dropped by 60%.

Many different types of people of all ages are filing for bankruptcy.  Many of my clients are in the baby boomer age group as I am.  Often they have been living off of credit for a long time and they may have suffered a job loss or they may have started a business that has failed.  Many people start these businesses on credit and when the business fails there is nowhere to go but into bankruptcy.

Also baby boomers are likely to have a house and children both of which can cost a lot of money (don’t I know it).  The housing prices have collapsed so there is no more equity to borrow out and many cannot afford the house payment they currently have along with the other credit payments.  Many have unpaid student loans and some have aging parents who need care and money too.  Often boomers’ aging parents have issues related to their health that they can’t handle alone.

In other words baby boomers are like everyone else only more so.  More likely to have kids, a job loss, a house, dependant parents and of course more debt.  It is not surprising to me then that they have to go bankrupt in large numbers.

So it’s not just the young and old that file anymore.  It’s the boomers who have been hit by recession, housing crisis, and unemployment and its the boomers that are shouldering the burden of their kids and their parents.  Its their turn but they sometimes can’t do it all without help.

Any questions about bankruptcy please visit my website at:

www.farquharlaw.com

I am a bankruptcy lawyer practicing bankruptcy law in San Diego.

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California “real” unemployment rate is 22%- the worst since the great depression!

(See here for my blog on how actual unemployment is up because people are leaving the workforce).

60 Minutes did an expose on unemployment in the US with a special eye on California.  I revealed some shocking and astounding stats showing an unemployment reality that is far worse than what we imagined.

The 60 Minutes piece revealed that:

22% unemployment in Californiathe worst since the great depression!  (The national figure was 17.5%).  If you include the under-employed (people working part-time that want to work full-time), and the people who have given up looking for a job the real unemployment rate in California is 22%.  The regular unemployment for California stands at 9.7%.

– Congress has responded by extended unemployment benefits to 99 weeks which will cost more than 100 billion dollars.  The people collecting unemployment compensation for 99 weeks (or 2 years) are now called “99ers”.

– More than one in 5 people is unemployed or under-employed.  That has a devastating effect on the state.  These people cannot pay taxes.  They cannot pay their bills.  They will lose homes, cars and some will become homeless.

– One woman talks of applying for a clerk position where 4 jobs were sought after by 2000 applicants.  Another man has looked for a job for 2 years and he finally got one at Target for $9 an hour.  Whole buildings are vacant in San Jose (silicon valley) where 75,000 jobs have been lost.

– Many of the unemployed are well-educated.  20% have college degrees.  One third of the unemployed have been out of work for more than a year which has not happened since the great depression.

Where are we going with all of this?  Bread lines? Soup kitchens?  How about world war III to get us all out of it in the end (deja vu all over again)?   Anyone else think we need new economic policies to restart this economy? I don’t believe that the country or the state can sustain this forever.

Bankruptcies are up yes but will there be anyone left to go bankrupt?  What if we have 30% or 40% unemployment in the future?  My advice to my clients is to file for bankruptcy now to get out of debt and if we are lucky this will blow over in 2 years and then you can get credit again if you need to.

As far as California goes I am losing hope.  The same lawmakers are being returned to office again and again and they continue to spend and raise taxes and fees which will drive away more businesses and jobs.  The state and local governments are bankrupt and their unfunded pension liabilities are mounting.

Poor California will probably not fall into the ocean but it sure is falling into a deep dark financial abyss.  Maybe the whole state will be forced to declare bankruptcy……

For more info, blogs and bankruptcy information please go to my websites at www.farquharlaw.com or www.freshstartsandiego.com.  Or call for a free consult about any bankruptcy or debt related issue at (619) 702-5015.  For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com    I am an San Diego bankruptcy attorney.

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