Just because you are over 65 years old does not mean you cannot file an assignment in bankruptcy. If you are unable to pay your debts as they normally come due, the debts total more than $1,000 and your liabilities are greater than your assets – you have passed the test of insolvency and are entitled to file an Assignment in Bankruptcy. The question then becomes – should you do so. If your income is only from Canada Pension or Old Age Security, you are protected as these cannot be seized or garnished by a creditor. Note that once your pension is deposited to your bank account, it becomes co-mingled with other monies and loses the identity of its origin. Your bank account could be garnisheed regardless of the source of the money. Therefore, never give a creditor information about where you bank.
The biggest reason why seniors declare bankruptcy is to stop the harassment of telephone calls and letters from collection companies and creditors. The bonus is that no creditor is allowed to start a lawsuit or continue one (if they have already started) as of the day you file the Assignment in Bankruptcy.
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.