Common reasons seniors may file for bankruptcy in Maryland

 Posted on February 23, 2024 in Elder Bankruptcy

Many senior citizens work hard and practice careful financial planning. However, unforeseen circumstances can lead to financial strain.

Sometimes, the strain may prompt some seniors to file for bankruptcy relief in Maryland.

Adult children

Seniors may find themselves financially supporting their adult children, whether through financial assistance with bills, loans or housing expenses. While this support often comes from a place of love and a desire to help, it can strain the senior's financial resources. This is especially true if the children face ongoing financial challenges.

Health care expenses

Seniors often face significant health care expenses, including medical bills, prescription costs and long-term care expenses. Even with Medicare coverage, out-of-pocket costs can accumulate rapidly, particularly for those with chronic illnesses or medical conditions. In Maryland, where health care costs can be high, these expenses can quickly deplete a senior's savings and retirement accounts.

Limited income

Seniors often rely on fixed incomes from sources such as Social Security, pensions and retirement savings. With the rising cost of living, including housing, utilities and groceries, these fixed incomes may no longer be sufficient to cover expenses. In the Greenbelt area, where the cost of living can be higher than the national and state averages, seniors on fixed incomes may find it particularly challenging to make ends meet.

Assets

For many seniors, their home, retirement accounts and car represent the bulk of their assets and financial security. Filing for bankruptcy may become a necessity to protect these assets from creditors, especially if the senior wishes to pass them on to their heirs. Losing these assets could significantly impact a senior's quality of life and financial stability in their later years.

Seniors in Maryland may face various financial challenges that could necessitate filing for bankruptcy. They must carefully navigate their financial circumstances to ensure a secure and stable future.