As the economic environment has worsened for all age groups, more baby boomers are filing bankruptcy than ever before. But why are so many baby boomers seeking the protection of bankruptcy during this recession?
- The high unemployment rate is impacting more workers even those workers who have traditionally been protected from layoffs during a recession. Many of these workers belong to the baby boomer generation and are finding it nearly impossible to find work with comparable compensation. Even if they do find work it does not pay nearly enough to cover their bills, so many baby boomers are choosing bankruptcy.
- Many baby boomers are losing their health insurance due to unemployment and when struck with an illness medical debt quickly piles up. Unable to pay their medical bills and other debts, these baby boomers are turning to bankruptcy so that they can discharge their medical bills and other unsecured debts.
- While the high cost of living has continually increased, many baby boomers are finding that the incomes of their children remain stagnant. Out of their sense of parental obligation many baby boomers take on additional debt to help their adult children to maintain middle-class lifestyles; but those additional debts often sink them financially. In the end, bankruptcy is the only way to dig out of the financial hole.
- Even the baby boomers who have not funded their adult children’s aspirations or fallen into medical debt are finding the financial environment to be harsh as their homes which often serve as retirement nest eggs lose significant value. Struggling with underwater mortgages, many baby boomers are unable to sell their homes even if they wanted to move to a smaller place and save money. Because of this, some baby boomers are filing bankruptcy and giving the home back to the lender so they can be free of over-inflated mortgage obligations.