Bankruptcies Soar For Seniors, Study Finds

Medical Problems, Inability To Work Serve As One-Two Punch

(AP)  First came the health problems. Then, unable to work, Ada Noda watched the bills pile up. And then, suffocating in debt, the 80-year-old did something she never thought she'd be forced to do.

She declared bankruptcy.

While the bankruptcy filing rate for those under 55 has fallen, it has soared for older Americans, according to a new analysis from the Consumer Bankruptcy Project, which examined a sampling of noncommercial bankruptcies filed between 1991 and 2007.

The older the age group, the worse it got - people 65 and up became more than twice as likely to file during that period, and the filing rate for those 75 and older more than quadrupled.

"Older Americans are hit by a one-two punch of jobs and medical problems and the two are often intertwined," said Elizabeth Warren, a Harvard Law School professor who was one of the authors of the study. "They discover that they must work to keep some form of economic balance and when they can't, they're lost."

That's precisely what happened to Noda. She worked all her life, on a hospital's housekeeping staff, and later selling boat tickets to tourists. She cut corners when she needed to but always paid the bills she neatly logged in a ledger.

"I was born during the Depression," she said. "I paid the bills whether I ate or didn't, whether I went to the doctor or not."

It all worked fine for Noda, a widow for 23 years, until she was forced to undergo double-bypass surgery and deal with respiratory problems. She started using two credit cards more frequently for food and bills. Before long, she was $8,000 in debt and behind on car payments.

"I'd go to bed and all I had on my mind was bankruptcy," she said. "I had nothing left."

Noda's car was repossessed, but her trailer home wasn't in jeopardy because her daughter owns it. While she's covered by Medicare and receives $968 in Social Security each month, she relied on her job for other expenses. She had no choice but to get help from Jacksonville Legal Aid and declare bankruptcy.

Most bankruptcies are still filed by people far younger than Noda, but the percentage the younger filers make up has fallen over the 16-year period, according to the Consumer Bankruptcy Project analysis, which will be published in the Harvard Law and Policy Review in January.

In 1991, the 55-plus age group accounted for about 8 percent of bankruptcy filers, according to the study, which looked at more than 6,000 cases filed in 1991, 2001 or 2007. By last year, filers 55 and over accounted for 22 percent.

Each age group under 55 saw double-digit percentage drops in their bankruptcy filing rates over the survey period, older Americans saw remarkable increases. The filing rate per thousand people ages 55-64 was up 40 percent; among 65- to 74-year-olds it increased 125 percent; and among the 75-to-84-year-old set, it was up 433 percent.

A number of factors are contributing to the increase. Higher prices for ordinary consumer goods have hit seniors on fixed budgets. For older Americans living below the poverty level, or not far above, a safety net likely doesn't exist for economic setbacks such as medical problems. And some fall prey to scams that cripple their finances.

Warren noted increasing numbers of Americans are entering their retirement years with significant debt and are still paying off mortgages. She said it was wrong to assume that lives of luxury are bankrupting seniors; rather, they're incurring debts to meet needs such as medical treatment.

"There's no evidence that the problem is consumerism," the professor said.

Nor is there a significant aging trend to blame. While the country is set to experience a notable age shift in the coming years, no major one took place between 1991, when the average age was 33, and 2007, when it was 36.

Frank and Hazel Peters lived frugally their entire 53-year marriage. They always rented a home but decided after the husband's retirement from a factory job that they would cash in his 401(k) and buy a manufactured home down a gravel road in tiny Hastings, a town of cornfields and potato farms.

But they fell victim to fraud when they tried to fix a plumbing problem that had black, sulphur-smelling water coming through the pipes of their new home without enough funds to fall back on. They declared bankruptcy.

"We knew we had no other option," 73-year-old Hazel Peters said. "We'd probably be out on the street."

Bankruptcy, tough no matter a person's age, is especially hard when you don't have many years left to recover. Warren said some seniors fear telling their families because they're afraid they'll be put in a nursing home if they're seen as unable to take care of their affairs.

Many who file also express a sense of relief.

Wilona Harris, 71, filed bankruptcy two years ago because of medical bills she and her husband accrued.

"This phone rang all the time. It made you not even want to pick up. Sometimes you think, 'Let me go jump off a bridge somewhere,"' Harris said at her Jacksonville home. "You have to cry and try and figure out what in the world could I do."

At least now, Harris says, she can fall asleep without crying.

[rbburnerjr]

You can be sure of one thing and that is the seniors will get no help or sympathy from Bush or his Republican cronies.

[pollroller1]

This is so sad. That poor poor lady. What a horrible way to end up in your golden years.

[lochlan-2009]

A story usually ignored by the media and politicians. Of course, population for this age has increased, and some, I am sure, left themselves unprepaired or made mistakes for the years before we die. Of course, this administration has done little to help these people over the last 15 years, and over a trillion dollars to a useless war for profiteers and seemingly endless corruption have cost America. We pay for all of it in taxes, and they take it all and divy it to the level of we now OWE them half a trillion dollars. That IS the money that is suppose to be taking care of America.

How they can still vote Republican is beyond me.

[cheetah-man7]

This is a disgrace! Older folks should not have to endure such hardships at this time in their lives. This country is falling apart at the seams! My best wishes to Ada during this trying time. May God bless!

[notopennshut]

This is what the last eight years have done to most of us struggling to live. Now there are still so many folks who want to extend these years of misery by allowing McSame to carry on with the same policies for another four years??? He has SEVEN homes and thinks that being rich is when you have only FIVE MILLION $$$$. How can anyone be so blind and be unable to see that McSame will destroy more lives???

[jerr11]

And come November you''ll see these same sorry folks going into the booths and voting for McCain!

These people deserve the government they get!

[sparks224]

Anyone who used the American healthcare "system" goes bankrupt.
They may have insurance, but the company simply finds a reason to deny the claim.
It''s your money or you life.
Nice "system".

[sparks224]

Anyone who uses the American healthcare "system" goes bankrupt.
They may have insurance, but the company simply finds a reason to deny the claim.
It''s your money or you life.
Nice "system".

[nothappyatall]

""This phone rang all the time. It made you not even want to pick up. "

Gezus people dont be helpless!!! just tell the phone co you are getting a lot of annoyance calls and CHANGE the dam number to an UNLISTED one!

[azhitman2]

Bring in more illegals so they can break the system completly with our free health care.

[vinnie1939]

I completely agree with linymo and cheetah-man7. The seniors in this country are not acknowlegded at all. It''s almost as if we do not exist. What do ''they'' care if we lose everything we''ve worked for all of our lives? We''ve gotten to the age that we have just a few years left to live (if we''re fortunant), so why throw away effort and money on us. Right?

Please visit this website (mine) for a good dose of reality if you have any doubts at all. Also click on the brass colored links.

http://mobilealabamarealtor.blogspot.com/

Thank you so much,
Orene Fennell

[dakotaclark]

Hmmm...

Remember this - the financial hardships experienced by senior citizens; and many others, is being brought to you by the ''kinder, gentler, Republican Party,'' as quoted by President Bush and ''Shotgun ***'' Cheney during their last election.

[mnbrant]

Noda''s car was repossessed, but her trailer home wasn''t in jeopardy because her daughter owns it. While she''s covered by Medicare and receives $968 in Social Security each month, she relied on her job for other expenses. She had no choice but to get help from Jacksonville Legal Aid and declare bankruptcy.
Legal Aid is no help. I called Legal Aid to say I couldn''t afford bankruptcy and can they help. They said my income is 20 times too high and they only help 1 of 20 people who come to them. Or something like that. Basically if you have a job and can work they won''t help you. SORRY!
Vote Obama!

[oneworldusa]

Why did this lady get a puppy if she couldn''t pay her bills already?

[beehive21-2009]

She missed the boat,paradise was waiting, then she received heart bypasses into hell.She missed the boat.

[sistatee-2009]

Why did this lady get a puppy if she couldn''''t pay her bills already?
Posted by OneWorldUSA at 02:28 AM : Aug 28, 2008

Why can people on welfare buy cigarettes, beer and lotto tickets?

[rainydayacct]

Although these folks played by the rules & worked hard all of their lives, bankruptcy has befallen them. My sympathies go out to these brave seniors!

[carlylaine]

If you socialistic-leaning citizens have your way something will be provided for all of the seniors who are REACHING THE END OF THEIR LIVES...it''s called GOVERNMENT CONTROL. I don''t want the DADDY GOVERNMENT bailing me out of anything. Hell, the bill collectors will only be there for a short time. Then POOF we will be dead of old age. Can''t take it with and that includes the effing bills accumulated through life.

File for bankruptcy then die. That''s what I plan to do. And I am a senior.

[patriot12436]

newsterl
The bill collectors have ways of getting even unlisted numbers. It may stop the calls for a few days but that is all.

[patriot12436]

Another thing i would like to bring up. Property tax includes money that is used to support our school systems. This is a good use of the money. The hing i think isn''t fair is a person pays all their life on property tax. When you retire your income drops significantly. I think it should be written into law that when you turn 65 your property tax stops. If you have paid your taxs all your life you should be exempt. I think our seniors have earned it.

[patriot12436]

oneworldusa
Look at the picture, the dog is a full grown chichuua. She has prpbably had him for years and for most pet owners to get rid of a pet would be like givig up a child.

[mcvet-1]

Why can people on welfare buy cigarettes, beer and lotto tickets?

Posted by SistaTee at 02:40 AM : Aug 28, 2008

Have ANY of you folks noticed how uneducated and just outright stupid the Bootlickers for the Nazi''s are?? Now ask yourself why would anyone bring up Welfare or people who are on Welfare when the issue is Bankruptcy and Seniors? I guess when you can''t think for yourself and you lack the basic knowledge to read and understand things, you are left with using whatever hate and division there is. How does some Trailer Dweller spewing Lies about Welfare help us in dealing with the VERY REAL Pain being handed our Seniors by policies and laws passed that put them IN that position? It''s sad to see what this nation has come too! Sieg Heil McSlime

[mcvet-1]

Although these folks played by the rules & worked hard all of their lives, bankruptcy has befallen them. My sympathies go out to these brave seniors!

Posted by RainyDayAcct at 04:35 AM : Aug 28, 2008

These are the LAST people who should be put in this position... the LAST PEOPLE!! Those Fascist who changed our laws on bankruptcy, the laws OUR FATHERS put on the books to PROTECT people like these seniors? They should be taken out and strung up PERIOD!! Sieg Heil McSlime

[skeezix06]

Yet another indicator of the financial trouble we''re in. This is the age group that has, until now, been somewhat insulated from this type of disaster.

To the poster who thinks she should not be allowed to own a chihuahua? May you end up in the same financial straitjacket some day so that you finally understand.

[fstop100]

people starve and some have so much money they don''t even know heir worth. time to tax the rich and help the poor instead of taxing the poor

[omega39-2009]

people 65 and up became more than twice as likely to file during that period, and the filing rate for those 75 and older more than quadrupled.

These are the people firmly in Senator Jurassic''s camp, it''s hard to feel sorry for them when they probably first voted for President screwball and now are waiting to finish the number being played on them.

[midvale3]

It really makes you shake your head when people still vote Republican because they fear a terrorist attack. They are much more likely to dies from lack of health care, malnutrition or Natural Disaster (Katrina) but they don''t seem to see that they need to vote those isses.

[babooph]

They voted for the"new world order" now enjoy it.

[cbsfan73]

gop_forever wrote:
"When people can not afford to pay their bills anymore, they should be euthanized before they amass a large amount of debt that someone gets left holding."

Shut up you retarded breeder. If being in debt is okay for the government, it is okay for the citizens too.

[cbsfan73]

You can thank the puppet politicians that allow the wealthy to get by with legalized extortion for these problems.

[cbsfan73]

Did you know that seniors are the highest suicide group in the nation?

[cbsfan73]

gop_forever wrote:
When people can not afford to pay their bills anymore, they should be euthanized before they amass a large amount of debt that someone gets left holding.

The poor are always in debt to the wealthy because they are exploited.

[cbsfan73]

Senior citizens don''t get enough respect. Especially from the government. Once you hit sixty-five, you should never pay another penny on anything medical.

[cbsfan73]

Runner!

Your turn on the carousel...

[patriot12436]

gopforever
There was a movie back in the sixties that showed if people went broke the govt had a chip in their head that would kill them. In your case i wish the chip was in place now.

[patriot12436]

cbs
Why just medical ? We pay property tax on our homes for life to support the school systems. When a person retires at 65 they should be exempt from homeowners tax as well. Their incomes drop significantly and they have paid their share and they usually haven''t had kids in schools for a long time.

[patriot12436]

marscoponi
The older generation is going for McCain because they are not buying the obama myth.

[cbsfan73]

patriot12436 wrote:
"cbs
Why just medical ? We pay property tax on our homes for life to support the school systems. When a person retires at 65 they should be exempt from homeowners tax as well. Their incomes drop significantly and they have paid their share and they usually haven''''t had kids in schools for a long time."

I agree.

[cbsfan73]

cbsfan73 wrote:
"Runner!

Your turn on the carousel..."

In case anyone has no idea what I am referring to:

Logan''s Run

[cbsfan73]

Mr. Politician:

Shame on you for making life so hard for seniors and so easy for the wealthy.

[cbsfan73]

fstop100 wrote:
"people starve and some have so much money they don''''t even know heir worth. time to tax the rich and help the poor instead of taxing the poor"

End all sales tax as this is an unfair burden on the poor and then tax the living hell out of the wealthy.

[patriot12436]

cbs
Just ignore gop forever. He is the best reason on here for supporting euthanasia.

[babooph]

Part of it is the soc. sec $ going into the general budget-most then going to the military to protect the rich-benifits then being cut -to give those rich a tax cut.The system is now a viscous tax on the poor & middle class- the rich ,of course are exempted from paying into it!!THAT GIVES THEM LOWER TAX% THAN THE REST OF US!!!!