A Closer Look at December 2017 Insolvency Stats

Consumer insolvencies in BC decreased in December 2017 overall by 15.0 percent from November 2017.  Consumer proposals decreased 13.6 percent while bankruptcies decreased 17.0 percent.

The proportion of proposals in consumer insolvencies in BC accounted for 61.28 percent during December 2017 while they accounted for 51.79 percent for all insolvencies across Canada for the same period.

Consumer insolvencies in BC for the 12-month period ending December, 2017, increased overall by 6.6 percent compared with the 12-month period ending December, 2016. Consumer bankruptcies decreased by 9.9 percent, while consumer proposals increased by 20.6 percent. Consumer insolvencies in all of Canada decreased 2.4 percent over the same period last year.  BC accounted for 8.78 percent of all insolvencies in Canada in December 2017.

The proportion of proposals in consumer insolvencies in BC was 61.28 percent during the 12-month period ending December, 2017, up from 54.18 percent during the 12-month period ending December 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.

While insolvencies across Canada are down overall by 2.9 percent, bankruptcies are down 8.5 percent, but proposals are up by 2.8 percent.  Proposals also make up 52.57 of all insolvencies in Canada in 2017 up from 49.66 percent in the previous twelve months.

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.

For more on the all Canada stats, please see this article.