A Closer Look at July 2017 Insolvency Stats

Consumer insolvencies in BC decreased in July 2017 by 15.9 percent from June 2017.  Consumer proposals decreased 12.4 percent while bankruptcies decreased 20.7 percent.

The proportion of proposals in consumer insolvencies in BC accounted for 60.2 percent during July 2017 while they accounted for 53.3 percent for all insolvencies across Canada for the same period.

Consumer insolvencies in BC for the 12-month period ending July, 2017, decreased by 9.9 percent compared with the 12-month period ending July, 2016. Consumer bankruptcies decreased by 24.0 percent, while consumer proposals increased by 2.6 percent. Consumer insolvencies in all of Canada are down by 2.4 percent over the same period last year.  BC accounts for 8.3 percent of all insolvencies in Canada in July 2017.

The proportion of proposals in consumer insolvencies in BC was 60.2 percent during the 12-month period ending July, 2017, up from 54.3 percent during the 12-month period ending July 2016.  It continues to indicate 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.

Insolvencies across Canada are down overall by 2.4 percent compared with the previous 12 month period, bankruptcies are down 9.0 percent but proposals are up by 2.1 percent.

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 more on Canadian insolvency statistics for July 2017.