Many Virginians struggling with overwhelming debt face creditor calls, collection letters and threats of lawsuits. This situation may encourage people to file for personal bankruptcy. After all, filing for Chapter 7 puts an automatic halt to any efforts to collect the debt outside the bankruptcy process. It can provide some relief from ongoing calls, creditor harassment or the potential of a judgment in court. If creditors want to continue with a debt collection attempt, including ending a lease, repossessing property or offsetting debts, they must first go through the bankruptcy court.
People are filing bankruptcy in their golden years more than before according to a study by a professor group. The professors used data gathered by the Consumer Bankruptcy Project and determined that the number of bankruptcy filings by people aged 65 to 74 grew by more than 200 percent between 1991 and 2016. In Virginia and across the U.S., the rate of bankruptcy filings by people 75 or older has more than tripled over that same period.