2012 Annual Bankruptcy Statistics released

Annual Bankruptcy Statistics Statistics
2012 Annual Bankruptcy Statistics

The 2012 Annual Bankruptcy Statistics were just released by the Office of the Superintendent of Bankruptcy. What they show is that both personal bankruptcies and proposals declined almost 4% across Canada. This is the third year in a row that we have seen a decline. However, as Sharon Hoyes pointed out (see Personal Bankruptcies in Canada Decline in 2012), this is despite a consistent increase in the level of consumer debt across Canada over the same period of time.
Another interesting trend is that we continue to see more Canadians are looking for ways to avoid a bankruptcy and as a result we see that the decrease in total bankruptcies of 8.3% in 2012. Which is contrasted with an increase number of consumer proposals filed of 4.2% in the same period (to read a good article about this see Record Number of Consumer Proposals Filed in Canada in 2012). While this was an all time high number of proposals filed across the country of 46,903 in certain areas in Toronto there were actually more proposals filed than bankruptcies.
While we haven’t quite seen this trend of more proposals than bankruptcies here in Alberta, we do see a reduced number of bankruptcies and increased consumer proposals) as compared to 2011. Here in Edmonton we saw the number of consumer bankruptcies filed dropped by 24% and the number of consumer proposals increased by 4.3%. Across Alberta we see the difference is even greater as the total bankruptcies filed dropped 18.1% and the total number of proposals filed increased 14.3%.
For any of you who are not aware, a consumer proposal is one of the most common alternatives to bankruptcy, and one that clearly is becoming a more common option for those in financial distress. One of the major reasons for it’s increase in popularity is that it contains many of the benefits of a bankruptcy (i.e. court protection, the ability to stop a garnishee and court action, eliminate all interest etc.), avoids many of the disadvantages of a bankruptcy (i.e. monthly reporting, long term stigma of filing a bankruptcy, loss of assets etc.) and at the same time will allow you to pay a portion of your outstanding debt over time in a fashion that actually fits into your budget. It is an excellent alternative to the filing of bankruptcy and works very well for people who can’t afford to pay their debts in full but still have the ability to pay a portion of their debt.
Regardless of the statistics, the increasing amount of consumer debt, or the health of the economy. If you are struggling with debt you clearly are not alone and it is important that you know there are ways to deal with this debt. If you are not sure what way to turn I would recommend you talk to me or another Bankruptcy Trustee in your area. You will be provided a free consultation that is designed to help you to assess where your finances are at and what options you can qualify for. There is no cost or obligation for doing so and we are happy to help.

Barton Goth

Barton Goth, BA, MBA, CIRP is a licensed Trustee in Bankruptcy with Goth & Company Inc. In addition, he holds a Masters in Business Administration with a specialization in finance. Barton regularly meets with people seeking help with their debt problems and works with them to find the best possible solution.