Study: Bankruptcies soar for senior citizens

In 1991, the 55-plus age group accounted for about 8 percent of bankruptcy filers, according to the study, but by last year, filers 55 and over accounted for 22 percent.

While age groups under 55 saw double-digit percentage drops in their bankruptcy filing rates over the survey period (1991-present), 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.

Professor Elizabeth Warden of Harvard Law School and Author of the Report: "Increasing numbers of Americans are entering their retirement years with significant debt and are still paying off mortgages. It [is] 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."

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