Why are all those baby boomers filing bankruptcy? Isn’t it just for the very young and old?
October 26, 2010 Leave a comment
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.
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I am a bankruptcy lawyer practicing bankruptcy law in San Diego.