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You, Bankrupt: New Study Reveals That the Average Bankrupt Looks Like You and Me

By J. Douglas Hoyes, CA, Trustee

What do you think a bankrupt person looks like? Do you think they are unemployed and ?down and out??

I personally compiled statistical data on everyone who recently filed personal bankruptcy or a consumer proposal with Hoyes Michalos, and in our just released study, The Face of Bankruptcy - You May be Similar to the Typical Bankrupt Person, we reveal that the average bankrupt looks very much like the average Canadian.

Joe Debtor, as we call the average bankrupt, is a male, 42 years old. He has one dependent living with him, either a spouse or a child. His take home pay is about $2,071 a month. Even though we call him Joe Debtor, almost half of all bankrupts are female, and they range in age from their early twenties to over 80 years old.

The average bankrupt has total unsecured debt of over $51,100, including $18,335 owing on credit cards, $13,365 on bank loans and lines of credit, and $5,276 in taxes owing. Our study shows that 33% of these individuals stated that lay-off or reduced incomes contributed to their financial problems, 16% stated that a relationship break up was a primary cause, and 40% admitted that they were over-extended and mismanaged their finances.

Most Canadians in financial difficulty are good, hard working people, but due to divorce, job loss and over use of credit are forced into bankruptcy. They do not follow the typical stereotype of the average bankrupt; in fact, they look like the average Canadian.

If you have more debts than you can handle, you are not alone. Call us today at 310-PLAN (that?s 310-7526, no area code required in Ontario), or e-mail us to arrange a free initial consultation.

Full post as published by Hoyes Michalos and Associates Ontario Personal Bankruptcy Blog on March 31, 2008 (boomark / email).