CALGARY, ALBERTA -- (Marketwire) -- 01/30/13 -- Personal Bankruptcy Canada
For the one-year period ending September 30, 2012, total consumer insolvencies have decreased yet again for an overall reduction of 5.2%. Bankruptcy filings in Canada have continued to decline at a rate of 10.7%, while consumer proposals(i) were on the rise again for a total of 4.7%, according to data recently released by the Office of the Superintendent of Bankruptcy (OSB).
The OSB is reporting the most significant reductions in personal bankruptcy rates across the provinces in Newfoundland (-21.0%), Prince Edward Island (-20.9%), Manitoba and Saskatchewan (-20.5%) and Alberta (-17.2%). Consumer proposal filings were most drastically increased in Prince Edward Island (+77.5%), New Brunswick (+49.4%), and British Columbia (+22.4%). New Brunswick was the only province recording an overall rise in consumer insolvencies (both bankruptcy and proposal filings) for the time period. It bears noting that proposal filings well exceed the number of bankruptcy filings in the province, indicating that more consumers are opting to pay back debts than filing for bankruptcy.
Will the Trend Continue?
In regard to the Canadian Economy, Craig Wright, senior vice-president and chief economist at RBC Economics stated, "The slower pace of debt accumulation is a step in the right direction, although it has been tempered by the fact that the pace of personal income growth has been lacklustre to date." He added, "Tightening labour market conditions and stronger wage increases may act to remedy this situation soon, paving the way for an eventual leveling off in the debt-to-income ratio."
David Smith, Trustee in Bankruptcy and Co-Founder of Personal Bankruptcy Canada, adds, "Banks and the governments are again recognizing the overall problem of record levels of consumer debt. Simply put - the issue of record debt cannot be solved simply by hoping things get better. Canadians suffering with debt problems should continue to talk to Trustees and understand the legal options available to truly solve the record debt problem they are facing."
For additional information about Canada personal bankruptcy and consumer proposals, visit www.PersonalBankruptcyCanada.ca.
(i) Consumer proposals are court-approved debt repayment arrangements allowed for by a provision in the Bankruptcy and Insolvency Act.
About Personal Bankruptcy Canada
Personal Bankruptcy Canada is a leading resource for Canadian debt and bankruptcy information. Its national network of independent professional trustees in bankruptcy, located throughout the Canadian provinces and territories, are dedicated to helping Canadians overcome and resolve debt and financial problems.
To view the image associated with this release, please see the following link: http://www.personalbankruptcycanada.ca/resources/canada-consumer-insolvency-statistics-infographic-qtr-ending-93012.
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