Released: April 27, 2007

Bankruptcy rises fastest among people 55-plus

Source: Kathleen Day, Washington Post (Free Registration)

Personal bankruptcy filings by people 55 and older are growing faster than those by any other age group, in part because of rising mortgage debt and medical expenses among seniors, a study published yesterday concludes.

Although the U.S. population as a whole is getting grayer as the baby boom generation ages, the percent of older people seeking to wipe out debt through bankruptcy is rising even faster, the study by two government researchers at the Administrative Office of the U.S. Courts shows. That office includes the U.S. bankruptcy court system.

“It’s frightening,” said Dallas Salisbury, president of the Employee Benefit Research Institute, a private nonprofit group that focuses on retirement and economic security issues. “This just underlines that an awful lot of older people not only haven’t saved enough, but by going into bankruptcy, they are starting over at a point in life when it’s harder than ever to save.”

Read Full Article: Bankruptcy rises fastest among people 55-plus