Bankruptcy for Senior Citizens: Options and Implications

Debt problems among Canadian seniors

Statistics show that an increasing number of seniors in Canada are facing financial difficulties and an unmanageable amount of debt.

In 2010, Canadians over the age of 65 were 17 times more likely to file a Consumer Proposal or Personal Bankruptcy then they were in 1990 (Vanier Institute’s 13th annual “Current State of the Canadian Family Finances: 2011-2012 Report”)

In 1987, 2% of Consumer Proposals and Personal Bankruptcies were filed by people over 60.

In 2000 that number had increased to 6%.

In 2012 it had risen to 16% (Office of the Superintendent of Bankruptcy)

Why are more Canadian seniors facing financial difficulty and having debt problems?

One of the reasons has to do with the changing demographics in Canada. People over the age of 55 represent 1/3 of the population. There are more seniors in Canada then ever before and those numbers are only going to increase.

The total debt levels for all Canadians are continuing to increase and seniors are not immune from this increase in debt. Because Canadians are taking on more debt, there is a higher portion of them that file a Consumer Proposal or Personal Bankruptcy. Overall, the portion of Canadians that file a Consumer Proposal or Personal Bankruptcy has increased from 2 people per 1,000 in 1990, to 4 per 1,000 in 2009. The increase in people who file a Consumer Proposal or Personal Bankruptcy, combined with seniors making up a higher percentage of the population means that more seniors are going to end up filing.

Are you facing debt problems? We can assist you to find the best debt solution to solve your financial problems and get a fresh financial start. Contact us for a free, no-obligation consultation, in which we review your debt and all your available options to get out of debt.