Health care costs spur senior bankruptcies

A recent study found medical expenses are a major contributing factor in bankruptcy filings among older Americans. The study, conducted by John Pottow of the University of Michigan Law School, revealed overall the elderly make up a relatively small percentage of those filing for bankruptcy; however, their numbers are growing at a startling rate.

In 2007, for example, the percentage of bankruptcy petitions filed by those ages 65 to 74 was 178 percent higher than in 1991. That increase occurred during the period before the 2008 recession, so current figures are likely even higher due to the recession’s impact on jobs, retirement portfolios and housing values.