[lbo-talk] Bankruptcy: the new social safety net?

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Tue Dec 21 11:23:58 PST 2010


--- Filing for Bankruptcy in Retirement-A Good Thing?

The number of people filing for bankruptcy protection in retirement has soared in recent years - even before the recession.

In fact, people 65 and older are the fastest-growing segment of the population seeking bankruptcy protection, according to a recent study from the University of Michigan Law School. The problem is simple math, said Johanna Sweaney Salt, a CPA with Kaufman, Schmid, Gray & Salt in Claremont, Calif. Their medical expenses, taxes and other costs keep going up, while their income is going down. Social Security hasn't had a cost-of-living adjustment in a long time and pensions and retirement accounts took a huge hit during the recession. Reverse mortgages and other alternatives presented to them as "solutions" often just dig them further in the hole.

[...]

http://www.cnbc.com/id/40589911



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