Tag: Retirement

Bankruptcy and Elderly Parents

Dear Trustees,

My elderly mother has debt problems and they are getting worse and worse now that my father passed away. My father used to handle bill payments and other financial issues. Now, I have noticed that my mother feels confused, overwhelmed and she has started to receive harassing phone calls because she has missed a few payments. It is not possible for me to take over these financial issues for my mom. We live in different cities and I do not want to treat her like a child. Should I mention a Consumer Proposal to my mom? What advice do you usually give elderly people who have difficulty managing their money? I have noticed a trend with elderly people and lack of knowledge in terms of bill payments and financial planning. Many children tend to take over for their parents once they reach a certain age but I feel that may be offensive and it may take away some of my mother’s independence. Any suggestions?  Thank you-Respectful Daughter

Dear RD,

We receive many questions such as this one-in respect to parents getting older and dealing with financial issues-it can be extremely overwhelming. After retirement, it is crucial to reorganize finances, make a new budget for living expenses and adjust to less income every month. It is common for an elderly man to handle bills and other financial issues. However, it is also common for women to become financial planners at this time as well. It is crucial to begin a dialogue sooner than later and perhaps involve the entire family. Financial planning is a sensitive issue and this is a case-by-case conversation that leads to several possible solutions. A Consumer Proposal may be a great suggestion if your mother is in a stressful, difficult financial situation-dealing with paying many bills at different times for various amounts. If your mother does decide to file for a Consumer Proposal, this decision will stop harassing phone calls, combine all debts into one payment, design a payment plan and provide your mother with financial help. This option also protects your mother’s home and car and she will not have to surrender assets. Please contact a trustee in bankruptcy to discuss options in detail. Every individual has a unique financial situation and trustees are trained to carefully examine the facts to maximize relief. Good Luck

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.