The average bankrupt individual looks very much like the average Canadian, according to a new study by Kitchener, Ont.-based Hoyes, Michalos & Associates Inc.

“We recently examined approximately 3,000 insolvency filings as part of our presentation to the Senate Committee on Banking, Trade and Commerce,” says Douglas Hoyes, a trustee with Hoyes, Michalos & Associates Inc.

“We discovered that a typical bankrupt is a male, 42 years old. He has one dependent and has a monthly income of around $2,071 and he has total unsecured debt of over $51,000. He is not that different than the average Canadian” concludes Hoyes.

In Ontario a record 42,434 bankruptcies were filed in 2007, up 8.2% from 2006.

The federal government has recently revised bankruptcy laws. “The new laws, when enacted, will provide some relief to bankrupts with student loans and RRSPs, but bankrupts with tax debt or significant monthly income will end up paying more,” says Ted Michalos, also a trustee with Hoyes, Michalos & Associates Inc.

“We expect to see an increase in the number of proposals filed to deal with these debts. The new laws could also alter the profile of those we see filing for bankruptcy,” concludes Michalos.