‘Joe Debtor’ gets older

The age of bankruptcy in Canada is growing.

There’s a troubling move towards more debt later in life.  Many Canadians are now going through their 50s with an increasing debt load rather than using that time to pay off debt.

But between 50 to 59 is usually the time when a person is trying to reduce debt and prepare for the golden years, says Douglas Hoyes, a trustee with the Ontario-based bankruptcy and consumer proposal services firm.

“We found, nope, in fact it’s the opposite. It keeps building and building,” says Hoyes, referring to debt loads.

The surprising thing is that the majority of these bankruptcies aren’t occurring due to unemployment:

A common stereotype is that the average bankrupt person is unemployed, but the study shows that 81 per cent of insolvent debtors were employed at the time of filing. The average take-home pay for Joe Debtor was $2,366 per month on a net basis, while the average household income was $3,058.

Read the full article here.

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Absinthe
Absinthe
7 years ago

Actually, #92, I have never defined being a bear as waiting for the crash.
I pay $1500-/month, all in, for housing expenses within cycling distance of work. You’ll be paid off, but with the same housing money so will I – because the monthly earnings will happily cover my housing expense. And most importantly, like many people of my generation, in 2006 there is no freakin’ way I could have bought the house I’m renting: it would cost me quadruple the expense I have to live in it. So it would have been cram my family of four into a tiny space far away, or – like so many people of my generation – leave the city.

Anonymous
Anonymous
7 years ago

“Whether the crash happens tomorrow, next year, three years from now, or *never*, bears have been right for 10 years. Because our rightness isn’t about the crash. Our rent money has afforded bigger houses in better locations without downside risk of special assessment or leaking hot water tanks.” So, when you’re wrong, you just re-define what it is to be right? I guees that makes me wrong? Believing that real estate was on an upswing, I chose to buy about six years ago (when you guys were already whining about a “bubble”), and I am now living comfortably in a house that has appreciated significantly, recently refinanced at under 3% interest, which guarantees nice and easy payments for another five years (all-in slightly less than I would have to pay in rent for my house). In about 10 to 15… Read more »

Anonymous
Anonymous
7 years ago

Gota love it. Jurock pays 750K and he gets an apology letter. Hey Ozzie I will apologize for all that stuff I said about you for half that.

Still at least one more law suite in the works for Jurock:

“Jurock, Barnes and Case are still facing another class action lawsuit filed by Delta resident Brian Stanchniak in July 2011 with respect to an apartment unit he bought in the 76-unit Crestwood Estates development in Williams Lake.

Stanchniak alleges they failed to report major repair work that needed to be done, misrepresented the value of the units, and failed to upgrade the units as promised.

Once again, Jurock and his associates have denied the allegations, but barring a settlement, the trial is scheduled to start on Nov. 25.”

Anonymous
Anonymous
7 years ago

“Where does $$$$$ to pay lawyers come from. Does it come from Deposits
in trust?”

Knowing lawyers they require a retainer. That would be paid by the developer in advance. The banks may be funding the developer. The deposit is not at risk.

Many Franks
7 years ago

Ozzie Jurock vs. investors is settled: the plaintiffs withdrawn all allegations and offer an unconditional apology. Jurock agrees to drop the defamation countersuit. Both sides pay their own legal costs.

Oh yeah, and Jurock is handing them $750,000.

Naturally, this is categorically NOT an admission of any kind of wrong-doing on Jurock’s part. No siree.

Absinthe
Absinthe
7 years ago

Yo, bulls. Whether the crash happens tomorrow, next year, three years from now, or *never*, bears have been right for 10 years. Because our rightness isn’t about the crash. Our rent money has afforded bigger houses in better locations without downside risk of special assessment or leaking hot water tanks. My rent on a 4 bedroom in Vancouver is less than taxes, commute, and interest would be on a 2 bedroom in Port Moody, and I don’t have to save for housing remediation. Even if there 10% yoy gains to be made buying in 2002, there sure isn’t in the market in Vancouver these days. And you know what? Lots of homeowners are suffering, trapped into tiny places with growing families, house poor. While a few of you have been gambling with houses for 10 years, you’ve helped this city… Read more »

Bailing in BC
Bailing in BC
7 years ago

Conrad, as long as the “house money” in my portfolio continues to return 3.5 times my rent costs, I will be content to be wrong for ever.

good-format
good-format
7 years ago

Assuming a mortgage of 500,000 at the best rate of 2.65%. Shorten the amortization from 30 years to 25 increases the month payment from $2,015 to $2,281, increased by 13.2%.

(Heating, insurance and property tax are not included in the above calculation).

Vote Down The Facts
Vote Down The Facts
7 years ago

Democrass, how many years can a crash last before its not a crash but the slow melt we were told couldn’t happen?

Lawyers are worst than Realturds
Lawyers are worst than Realturds
7 years ago

“Yes it would be held in trust by a lawyer. If they go bankrupt it would be up to the creditors to complete the project or return deposits.”

Where does $$$$$ to pay lawyers come from. Does it come from Deposits
in trust?

Democrass
Democrass
7 years ago

“what is going to precipitate a crash”

The crash was precipitated last June because prices were too high. The crash will resume this June. Remember this next spring when you ask the same question. How many years into the crash will it take for you to realize that the RE market is falling?

Conrad
Conrad
7 years ago

inventory is lower than last year, and sales are pretty good right now. better luck next year bears. Only 2 more of these springs and you will be wrong a whole decade…wow amazing

Anonymous1
Anonymous1
7 years ago

So if inventory is now lower than last year, what is going to precipitate a crash?

Vote Down The Facts
Vote Down The Facts
7 years ago

oneangryslav2, and there weren’t any of those last year? What happened to the “rush to the exits”?

Anonymous
Anonymous
7 years ago

“Is the developer required to put the deposit in escrow? What if they go bankrupt?”

Yes it would be held in trust by a lawyer. If they go bankrupt it would be up to the creditors to complete the project or return deposits.

oneangryslav2
oneangryslav2
7 years ago

Vote Down The Facts Says:
May 13th, 2013 at 8:21 pm 77
Inventory now lower than this time last year.

Not surprising, really. There is most likely a whole pile of “take it off the market/don’t list it now until the market turns around” folks right now.

Vote Down The Facts
Vote Down The Facts
7 years ago

Inventory now lower than this time last year.

emmi
emmi
7 years ago

, Is the developer required to put the deposit in escrow? What if they go bankrupt?

emmi
emmi
7 years ago

@ Troll

The best “soft landing” is a flat line, but Vancouver it will have to be flat for a decade to bring prices to long term norms. That might sound like a great scenario, but the industry is built on the assumption of growth. No one knows how to function in stagnation.

Banks won’t give out money when you most need it to backstop a recessionary shortfall, they pull credit when it is most dear and pile it on during growth. This amplification makes a long-term flat market very unlikely. But keep hoping.

Anonymous
Anonymous
7 years ago

Boombust = teacher?

Hey BB teachers will get nothing from the NDP except for maybe a smaller class size due to the shrinking BC population due to no jobs for kids parents. There will be no money left for you after the other union fat cats get paid. Teachers are at the bottom of the NPDs priority. I am sure that hag Susan Lambert will piss them off too.

Anonymous
Anonymous
7 years ago

May-2012
Total days 22
Days elapsed so far 9
Weekends / holidays 4
Days missing 0
Days remaining 13
7 Day Moving Average: Sales 132
7 Day Moving Average: Listings 290
SALES
Sales so far 1152
Projection for rest of month (using 7day MA) 1713
Projected month end total 2865
NEW LISTINGS
Listings so far 2618
Projection for rest of month (using 7day MA) 3767
Projected month end total 6385
Sell-list so far 44.0%
Projected month-end sell-list 44.9%
MONTHS OF INVENTORY
Inventory as of May 13, 2013 18093
MoI at this sales pace 6.31

(Can’t log in for some reason, but you know it’s me! Love, Vance)

Anonymous
Anonymous
7 years ago

Almost a purchaser: “Can the presale purchaser sue the developer and force the developer to complete the project, if the developer fails to complete the project?”

Question: When you almost purchased the presale did you read the contract? if you had you would know the answer.

Answer: All they have to do is return the deposit with a set interest rate (likely sub 1%) and they can cancel the project for any reason.

Boombust
Boombust
7 years ago

Whatever.

Anonymous
Anonymous
7 years ago

“Furthermore, I think Dix should pass a law that any tanker off the BC coast that does not have a double hull should be torpedoed.”

Actually that sounds like something NDP would enter into policy. Torpedo oil tankers in order to prevent a spill. Makes perfect sense.