Seniors With Tax Debts: A Kitchener Bankruptcy Story
The sad truth about debt is that it doesn’t discriminate.
Debt is a problem that can affect men and women of all ages and from all walks of life.
As you’ve likely guessed from the title of this page, it even affects senior citizens.
According to Statistics Canada, in 2017, people aged 65 or over comprised almost 17% of the total population.
That figure is expected to rise to 24% by 2036. At present, households on average owe $1.77 for every dollar they earn.
Further statistics reveal the median debt of seniors was $25,000 in 2016.
Some of that debt is attributable to mortgage debt increases.
But, many seniors find they also have income tax debt due to pension incomes not withholding enough tax at the source.
Need Help Reviewing Your Financial Situation?
Contact a Licensed Trustee for a Free Debt Relief Evaluation
The focus of this page centers around the story of Beryl.
She’s a senior citizen aged 70 years old that lives in Kitchener.
She enjoyed many happy years living with her husband, but sadly he passed away two years ago.
Beryl now lives alone in the home she shared with her husband and their family.
Unfortunately, her story is not a unique one in the sense that her debt situation had become untenable.
The trouble with Beryl’s finances was she had to contend with income tax debts.
Those debts amounted to $7,900 on top of the $23,500 she owed on various credit cards.
Beryl owed a total of $31,400 and is on a relatively low pension income.
When Beryl’s husband Peter was still alive, his pension income helped to keep them afloat from a financial standpoint.
Sadly without Peter’s contributions, Beryl found it almost impossible to keep up with her debt repayments and pay her household bills.
Despite being a proud woman, Beryl felt helpless about her financial predicament.
In the end, she decided to deal with her debts by filing for bankruptcy.
She’s thankful that she now has debt relief and can continue to enjoy her twilight years, free from debt worries.
Preventing debt problems before they happen
Beryl’s story is not uncommon, but if you want to avoid such problems before you reach retirement age, it’s crucial you take the following advice on board:
Plan for the unexpected
Life has a habit of catching people out when they least expect it.
That’s why you should plan for unexpected events, such as the illness or passing of your spouse or loved one.
Don’t enter retirement with debt
Finally, when you aren’t working, you have to rely on income sources such as state and private pensions.
Your income will likely be significantly less than when you worked for a living.
That’s why it makes sense to have a plan to clear your debt before you retire.
Contact us today on (877) 879-4770 to discuss how you can get the right debt relief for your financial situation.
All calls are confidential, and you aren’t obligated to take up any of our services.
How to File for Bankruptcy
What is Bankruptcy?
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?