The Office of the Superintendent of Bankruptcy recently released its statistics for bankruptcies and proposals across Canada for the month of December 2011. Presumably, this means that the annual report for 2011 will also be released in the near future.
I’m going to fire a bunch of figures your way. The trend is consistent – fewer people are filing bankruptcies.
• Total consumer insolvencies (bankruptcies and proposal) for December 2011 decreased by 7.5% compared to December 2010
• Total consumer insolvencies for the year ended December 2011 decreased by 8.9% compared to the year ended December 31, 2010
• Consumer bankruptcies for the year ended December 2011 decreased by 15.9% compared to the year ended December 31, 2010
• Consumer proposals for the year ended December 2011 increased by 6.4% compared to the year ended December 31, 2010
Across the board, the numbers for Ontario were in line with these trends. The first thing that stands out to me though is with respect to consumer proposals. Fewer people are insolvent, but more people are filing consumer proposals.
It’s important to consider why somebody would normally choose to file a consumer proposal instead of personal bankruptcy. Here are the normal reasons.
• Bankruptcy might mean losing significant personal assets
• Bankruptcy might mean paying surplus income
• A previous bankruptcy means not being eligible to be discharged from bankruptcy for at least 24 months
• A proposal usually means paying a fixed monthly amount through a single payment
I’m not going to try to guess at what all these numbers mean. The main reason that I talk about statistics like this is to try to reassure people that they are not the only ones in a difficult situation. If you need help to deal with your debts, you have to start somewhere.
People are often nervous about talking to a trustee in bankruptcy because they are afraid of the B word. Remember that our role is to assess your circumstances and provide information about all of your options for dealing with your debts. It’s about helping you make an informed choice. If the right choice is to file a bankruptcy or proposal, we will help you through the process. Even if it doesn’t mean filing a bankruptcy or proposal, we can also help you identify other choices that might be better for you.
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