Bankruptcy report: If you were to lose your job, how long could you keep paying your bills?

By CBC News

The typical person who files for bankruptcy in Canada is a 41-year-old male owing $59,800 to something that isn't a mortgage, a report from an Ontario-based insolvency trustee said Monday.

Kitchener-based Hoyes Michalos & Associates published a report that draws on an analysis of the 8,000 customers the firm assisted in 2009 and 2010.
While far from scientific, the report provides a sketch of the typical Canadian who undergoes bankruptcy proceedings.

"While many of our debtors admit they may have mismanaged their money, the vast majority of people we meet with are not bad people, and we believe it is important to put a 'face' on the average insolvent person -- we call him Joe Debtor," the report said.

According to Hoyes, Joe Debtor is likely a married man or formerly married. About 45 per cent were married or living common law at the time of filing. He likely lives in a household with at least one other person, and he takes home $2,240 a month after taxes -- slightly below the Canadian average of $2,419.

In addition to an outline of the average debtor, the report includes warning signs that could indicate you are on the verge of becoming Joe Debtor, including: an avoidance of opening bills, making only minimum payments on debts, using one credit card to pay another and knowing one would need to borrow money in the event of an emergency like a car repair.

Read more.

Do any of the warning signs listed in the bankruptcy report apply to you? If you were to lose your job tomorrow, how long would you be able to continue meeting your financial obligations? Share your thoughts in the comments below.


(This poll is not scientific. It is based on readers' responses.)