Yes you can. Anyone who owes more than $1,000 and is unable to pay their debts is eligible to file for bankruptcy or file a proposal.
Unfortunately, retired individuals are a growing segment of the population who are facing financial difficulties. Frequently, this is because of lower income in retirement, an unexpected event, a medical condition or the loss of a loved one.
Although the process is the same, there are some special considerations. A retired person’s income is usually fixed and lower than when they were working and they often have no ability to increase their income. Also, there are some protections in place to protect retirement funds. Pensions and RRSPs (other than contributions made in the last 12 months) are exempt assets, meaning that you can keep them despite having gone bankrupt or filing a proposal.
We are pleased to offer a free consultation to discuss your particular situation and whether bankruptcy or filing a proposal might be a reasonable way to deal with unmanageable debts.
Jean Goguen, CPA, CMA, CIRP, Licensed Insolvency Trustee
Licensed Insolvency Trustees
Fresh start…the road to financial freedom