Canada Consumer Debtor Profile based on consumer insolvency statistics in 2021
As part of the Canada government’s commitment to openness, accountability, and public engagement, the Office of Superintendent of Bankruptcy has developed the Canada Consumer Debtor Profile report, which contains consumer insolvency statistics. Here a comprehensive Canada Consumer Debtor Profile report based on 2021 insolvency statistics:
Total Consumer Insolvency Numbers in Canada
2.9 out of every 1000 adult Canadians filed for insolvency in 2021.
Of the 90,092 insolvencies filed, 30% of them were bankruptcies and 70% of them were proposals.
Median Assets and Liabilities
Median household assets are $11,424:
82% of debtors had furniture with a median value of $2,000.
65% of debtors owned a vehicle with a median value of $9,175.
50% of debtors had personal effects with a median value of $1,000.
25% of debtors had a cash surrender value for life insurance policies, RRSPs etc. with a median value of $6,686.
16% of debtors owned a home with a median value of $224,000 and a median mortgage value of $187,000.
Median household liabilities are $45,770:
86% of debtors had credit card debt with a median debt of $12,330.
53% of debtors had bank loans with a median value of $17,960.
42% of debtors had finance company loans with a median value of $11,300.
14% of debtors had student loans with a median value of $11,000.
36% of debtors had tax debt with a median value of $3,611.
Debtor Characteristics in Canada
The average age of a debtor is 46 years.
The average household size is 2 people.
The rate of repeat insolvencies is 21%.
51% of debtors are male, 49% of debtors are female.
15% of insolvency filings are from rural areas, 85% of insolvency filings are from urban areas.
Marital Status
34% of debtors are either married or common law.
42% of debtors are single.
21% of debtors are divorced or separated.
3% of debtors are widowed.
Top 5 Reasons for Financial Difficulty
The number one reason for financial difficulty was loss of income at 48%.
The second highest reason for financial difficulty was medical reasons at 21%.
The third highest reason for financial difficulty was the COVID-19 Pandemic at 16%.
The fourth highest reason for financial difficulty was relationship breakdown at 12%.
The fifth highest reason for financial difficulty was financial support of Others at 5%.
Note: 72% of debtors provided reasons for financial difficulty that can be categorized under the heading “Financial Mismanagement”. This category has been excluded due to its limited analytical value.
Median Monthly Income and Expenses
The median monthly household income among debtors is $2,566.
The median monthly household expenses among debtors is $2,748.
Therefore the net difference between the two figures is -$182.
The graph displays the tops 5 median expenses among debtor households.
Housing expenses are the largest median monthly expense $1,115.
Living expenses are the second largest median monthly expense at $590.
Transportation expenses are the third largest median monthly expense at $320.
Insurance expenses are the fourth largest median monthly expense at $138.
Personal expenses are the fifth largest median monthly expense at $80.
Debtors by Age Brackets
24% of debtors were under the age of 35 in 2021
The graphic notes the following characteristics:
Their median Assets are $8,100.
Their median Liabilities are $35,854.
8% own a home.
Their median Credit Card debt is $7,000.
37% of debtors were between the ages of 35 and 49 in 2021
The graphic notes the following characteristics:
Their median Assets are $15,400.
Their median Liabilities are $53,111.
19% own a home.
Their median Credit Card debt is $12,557.
27% of debtors were between the ages of 50 and 64 in 2021
The graphic notes the following characteristics:
Their median Assets are $13,972.
Their median Liabilities are $51,722.
19% own a home.
Their median Credit Card debt is $16,000.
12% of debtors are aged 65 and up in 2021
The graphic notes the following characteristics:
Their median Assets are $7,645.
Their median Liabilities are $38,654.
16% own a home.
Their median Credit Card debt is $17,380.
Note: In the context of this report, a debtor is an individual consumer who has filed for an insolvency, either a bankruptcy or proposal.
Also See: Chapter 13 bankruptcy filings in US increased 32% in 2022
