Meet Joe Debtor

by Joel Sandwith on March 2, 2011

A study was released on Monday by Doug Hoyes and Ted Michalos, the founders and owners of the bankruptcy firm of Hoyes, Michalos and Associates,  Inc.  The study, called “Joe Debtor:  The Face of Bankruptcy” is an in depth look at who files bankruptcy in Canada, and why they file.

Over the course of the next couple of weeks, I’d like to break this study down and look at all of the things that Doug and Ted learned in their research.

The first question we’ll answer is “Who is Joe Debtor”?

The study was conducted using the internal data of Hoyes Michalos – as part of the bankruptcy process, the Trustee is legally required to collect certain information, such as age, sex, marital status, family size and so on.  Hoyes Michalos assisted 8,000 people in filing bankruptcy in 2009 and 2010.

Here are some of the results of their finding:

The average age of someone filing bankruptcy is 41

About 58% of bankruptcy filings are by males

The average take home pay of Joe Debtor is $2240, which is slightly below the Canadian average of $2419.

Joe Debtor has an average unsecured debt (so not including mortgages and car payments) of $59,800

Of that debt, on average $24,390 is credit cards, $13,761 is bank loans or lines of credit, and $5,412 is in taxes owing.

On average, Joe Debtor has a household of two people.

26% of people surveyed did not own a home, so it is likely that Joe Debtor is a renter.

The most important thing to know about Joe Debtor is that he could be any one of us.  Thousands of people have been affected by the recession, and thousands more are dealing with financial distress that has nothing to do with the recession.

If you are feeling a bit like Joe Debtor, give us a call, toll free at 310-PLAN, so that we can help you to learn your options.

Also, keep reading this blog – next up will be a look at what got Joe to where he is today.  Coming soon, how to avoid becoming Joe Debtor, and how to recover from a situation like his.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Leave a Comment

Previous post:

Next post: