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.
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