1512 Artaius Parkway, Suite 300,
Libertyville, IL 60048

Call for a FREE Phone Consultation


Video Consultations Also Available

Baby Boomer Generation At Risk of Foreclosure and Bankruptcy

Posted on in Foreclosure

Once the leading consumer demographic, the Baby Boomer generation is now stepping aside as the Millennial generation slides into the number one position as the reigning U.S. consumer demographic.

According to NBC News, not since 1947 has the U.S. experienced such an expansive shift in demographic hierarchy. The Millennials, or those with an average age of 22 years, now represent a higher concentration than any other age group. Although Generation X may still have something to say about the advancement, statistically it is the Millennials who rank the strongest of existing generations.

One then may wonder what the future holds for the exiting Baby Boomer generation. For those born between 1946 to 1964, it is projected that the last members of this once influential generation will turn 65 by December 31, 2029. It is projected that at that time, 80 million will be eligible for Medicare and Social Security as they enter into retirement.

Will this 77 million member group also be prepared for possible financial distress? It is predicted that many will face bankruptcy or foreclosure due to inadequate financial planning.

NBC News further discloses that for those age 55 and over, retirement may be further compounded by higher rates of mortgage debt, leading to possible home foreclosure, as well as complications from skyrocketing healthcare costs, leaving this generation financially vulnerable. Other factors leading to the increase of Baby Boomer financial problems include the following factors:

Increased Unemployment

Staggering unemployment rates for Boomers has impacted more workers than those typically protected during unemployment layoff cycles. Once “downsized,” many find it virtually impossible to secure sustainable or comparative income levels, often leading to an increase in home foreclosure rates.

Healthcare Costs

As forecasted, many are losing their health insurance due to unemployment and are now facing a higher risk of bankruptcy. With an increase in medical debt combined with the inability to pay down this debt, many are seeking protection under the U.S. Bankruptcy Code (Public Law 95–59) as a means to discharge these debts as well as other forms of unsecured debt held.

Cost of Living

The decrease in income typically does not meet the higher cost of living, often leaving Boomers in a financial quandary. Since the wage deficit also hinders their children's ability to forge an independent existence, children are flocking back to the once proverbial “empty nest.” Boomer parents are now taking on additional debt as they try to financially assist their adult children, and often Chapter 7 bankruptcy is the only viable recourse.

Home Market Values

Many Baby Boomers counted on the sale of the family home as a contributing retirement factor. However, the housing market has not been kind. Due to the decrease of market values, many find they are unable to sell their home and, because of this, many are considering bankruptcy or contacting an experienced foreclosure attorney to discuss their options.

Contact a Bankruptcy Attorney

If you are a member of this once powerful demographic group and are experiencing financial difficulties, please contact us to schedule a free phone consultation. The skilled Arlington Heights bankruptcy attorneys of Newland & Newland have been assisting clients throughout the Northern Illinois area since 1993. Contact our office at 847-549-0000 to schedule your consultation. We would be more than happy to discuss your situation.

  • Top 100
  • AFDA
  • BBB
  • Illinois State Bar Association
  • Illinois Trial Lawyers Asscociation
  • Manta Member
  • North western suburban bar association
  • Top One
  • Expertise
Back to Top