Monday, March 8, 2021

Heavily-Indebted Boomers Increasingly The Ones Going Bankrupt:

 BUSINESS (Canada)

02/10/2021 16:47 EST
Heavily-Indebted Boomers Increasingly The Ones Going Bankrupt: Study
Rapidly rising house prices are shielding indebted borrowers from insolvency, but for those without real estate, it’s a different story.

By Daniel Tencer

Amid the COVID-19 economic crisis, a lot of attention has focused on younger working Canadians, who have been disproportionately hit by job losses. But a new survey of consumer bankruptcies suggests it’s aging Canadians ― those over 50 ― who are increasingly ending up insolvent.

People aged 50-plus have seen their share of insolvencies jump since the start of the pandemic, from 28.3 per cent in 2019 to 31.4 per cent immediately after last year’s lockdowns, according to a study from insolvency trustees Hoyes Michalos. The study looked at 3,900 Ontario insolvencies filed with the firm.

This comes at a time when ― thanks to emergency pandemic income supports from the government ― the number of Canadians who filed for insolvency actually dropped by nearly 30 per cent, according to the Office of the Superintendent of Bankruptcy.