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Do senior citizens of 83 years of age declare bankruptcy?

My mother is presently living in subsidized housing for seniors. She has lived there independantly for a number of years now. Her health is becoming more fragile and she would like to live in a seniors residence. I have recently discovered that she owes $10,000 to a major credit card and another $2,000 to a major department store credit card. She is 83 years old and living on only OAS, CPP & QPP, supplementary income & a small British pension. How will it be possible for her to pay off these debts? and what should she do? Thanks.

One Response to “Do senior citizens of 83 years of age declare bankruptcy?”

Barton Goth GCO Bankruptcy Trustees said...

Bankruptcyis an option that is available for anyone who finds themselves in a position where they are unable to pay their debts as they become due, irrespective of age.

The only question that must be asked is whether or not a bankruptcy is required. The reason this must be asked is that typically pension income is something that creditors are prevented from garnisheeing (at least from the source, if she keeps monies in the bank the creditors may be able to seize bank accounts). As such other than make their harassing phone calls, as long as you mother doesn’t keep her money in a bank, there may be very little the creditors can do to force collection.

This isn’t to say she shouldn’t consider bankruptcy, but simply that from a financial perspective it may not be necessary. When you look at it from a quality of life perspective the reduction of stress associated with the bankruptcy may be sufficient enough of a reason to merit the filing.

The best thing to do is to contact a licensed trustee and discuss these issues with them. With his help they will be able to help you develop a plan that will be best for your mother.