Retirees

It’s not unusual for people to get to their retirement owing an amount on their mortgage or on personal debt. In Quebec, 1 out of 8 people who file for bankruptcy is 65 years old or over, and pre-pandemic, this was the only age group with rising rates of insolvency. And if seniors don’t have a pension plan, they often must get part-time work to make ends meets and pay their debt related payments.

If a person is healthy with a relatively low amount of personal debt (credit cards, line of credit, personal loan, etc.), they may choose to work a part-time job long enough to complete the debt repayment plan that we can set up for them.

But, if they can’t work due to health issues or if they have too much personal debt or high interest rates, a consumer proposal or bankruptcy will be the best way for them to balance their budget over the long term. The effect on their credit rating is less important for them, because their future financing needs are much lower.

The sooner you have a clear picture of your personal finances and your options, the better your chances of pulling through.