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The Profile of Bankruptcy on Income and Expenses

As part of the government’s commitment to openness, accountability, and public engagement, the OSB has developed the Canadian Consumer Debtor Profile report, which contains consumer insolvency statistics.

Let’s take a look at the 2019 Income and Expenses part of the OSB Consumer Debtor Profile report that may be the reason there were 137,178 consumer insolvency filings, of which 40% were bankruptcies and 60% were proposals, with 4.6 out of every thousand adult Canadians filling for insolvency.

In 2019, debtors’ median (midpoint) monthly household income was $2,717 while median household expenses were $2,780. Therefore, leading to a monthly net deficit of $63.

Family income refers to the net income of the debtor’s household. This includes single‑person households. Family expenses are the expenses for the debtor’s entire household. This includes single‑person households.

In comparison, as of 2017, the median monthly household income for the general population was $5,800. The median monthly debtor expenses for common categories are as follows:

  1. Housing expenses are the largest – $1,075

  2. Living expenses are the second largest – $570

  3. Transportation – $352

  4. Insurance ‑ $133

  5. Personal – $120

Expense definitions

Housing expenses include rent/mortgage/hypothec (a mortgage or security held by a creditor on the property of a debtor without possession of it, created either by agreement or by operation of law), property taxes, condo fees, heating/gas/oil, telephone, cable, hydro, water, furniture, and other.

  1. Living expenses include food/grocery, laundry/dry cleaning, grooming/toiletries, clothing, and other.

  2. Transportation expenses include car lease or payments, repair/maintenance/gas, public transportation, and other.

  3. Insurance expenses are vehicle, house, furniture/contents, life insurance, and other.

  4. Personal expenses include smoking, alcohol, dining/lunches/restaurants, entertainment/sports, gifts/charitable donations, allowances, and other.

If you are one of the many who have a concern with managing your expenses vs. the income you have monthly, a Licensed Insolvency Trustee can help to assess your financial situation and determine the best course of action for you. 

There are many different options to get relief from debt, but if you are unable to pay your bills with no solution in sight, the smartest choice for you may be to wipe the slate clean with a Declaration of Bankruptcy.

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