Look in the mirror. It is likely that you have more in common with the average bankrupt than you may think.
In a new study, Hoyes, Michalos & Associates Inc. reveals that the average bankrupt looks very much like the average Canadian. "We recently examined approximately 3,000 insolvency filings as part of our presentation to the Senate Committee on Banking, Trade and Commerce," said Douglas Hoyes, a trustee with Hoyes, Michalos & Associates Inc. "We discovered that a typical bankrupt is a male, 42 years old. He has one dependent and has a monthly income of around $2,071 and he has total unsecured debt of over $51,000. He is not that different than the average Canadian" concluded Hoyes.
In Ontario a record 42,434 bankruptcies were filed in 2007, up 8.2 per cent from 2006. "Avoid becoming a statistic. Bankruptcy is only necessary once the other steps prove to be ineffective," cautioned Ted Michalos, a trustee with Hoyes, Michalos & Associates Inc.
The Federal Government has recently revised bankruptcy laws. Ted Michalos commented that "the new laws, when enacted, will provide some relief to bankrupts with student loans and RRSPs, but bankrupts with tax debt or significant monthly income will end up paying more. We expect to see an increase in the number of proposals filed to deal with these debts. The new laws could also alter the profile of those we see filing for bankruptcy," concluded Mr. Michalos.
More details on the average debtor and the new bankruptcy laws can be found at www.hoyes.com.
Subscribe to this comment's feed
