I always enjoy being challenged by a reporter with insightful questions. Cindy Perman does a fantastic job at it. Throughout her interview, she kept digging down on the advantages and disadvantages that seniors would have in filing a bankruptcy case.
I regularly recommend that filing a bankruptcy case be a last resort except in exceptional circumstances. However, after speaking with Cindy, I realized that seniors and especially seniors on fixed incomes should consider bankruptcy as an option earlier in their thought process than people in other demographics. The advantages can be great. Cindy Perman's article does a fantastic job describing the situation for seniors. You can read her full article at cnbc.com and in the money section of usatoday.com.
The Great Recession has hit seniors particularly hard. They approach retirement or have retired while the stock market floats along. Extra income they may have expected from their homes has evaporated with the crashing housing market. Many have had their pensions reduced or taken away. Most can ill afford debt payments on the reduced income they now have to live on for their remaining years. If they can free up some of the income from overwhelming debt service payments, they may be well-advised to consider bankruptcy.
Read more here: cnbc.com and usatoday.com. Cindy's blog can be found here. All the advice seniors or anyone else struggling with debt problems can be found in the Road Out of Debt.