A closer look at May 2017 insolvency stats

Consumer insolvencies in BC increased in May 2017 by 21.7 percent from April 2017.  Consumer proposals increased 25.9 percent while bankruptcies increased 16.9 percent.

The proportion of proposals in consumer insolvencies in BC accounted for 55.5 percent during May 2017 while they accounted for 50.4 percent for all insolvencies across Canada for the same period.

Consumer insolvencies in BC for the 12-month period ending May, 2017, decreased by 7.1 percent compared with the 12-month period ending May 2016. Consumer bankruptcies decreased by 6.3 percent, while consumer proposals decreased by 7.8 percent. Consumer insolvencies in all of Canada are down by 1.1 percent over the same period last year.

The proportion of proposals in consumer insolvencies in BC was 56.9 percent during the 12-month period ending May 2017, up from 53.6 percent during the 12-month period ending May 2016. It indicates the popularity of consumer proposals as a way for consumers to deal with their debt and with dealing with a Licensed Insolvency Trustee over other unregulated service providers.

The insolvency statistics indicate the increasing benefits of the protections provided to consumers under the Bankruptcy and Insolvency Act over other non-legislated options, whether that is a consumer proposal or a bankruptcy.   It also indicates that consumers are seeing the benefits of seeking the professional advice of a Licensed Insolvency Trustee rather than those of other non regulated service providers.

If you would like to know exact details of how a consumer proposal or a bankruptcy would benefit you in dealing with debt, call us at (604) 605-3335 to schedule a free consultation.

Call us.  It’s not too late

See this article for other Canadian insolvency stats for April 2017.