The Statistics of Personal Bankruptcy in Canada

Personal Bankruptcy Statistics

Personal bankruptcy is a proposition that no one wishes to be. However, if you’re currently in this situation, you’re not alone with your struggle. In Canada, statistics show that most of its residents are qualifying for bankruptcy; thus, undergoing its painstaking process. Significantly, bankruptcy as the last resort can free you from indebtedness if you religiously comply with what it requires.

How many people file bankruptcy in Canada each year?

For several years, Canadians who are defaulting on their debts has been in reserve despite the growing obligation. Besides, the economic development in Canada, it still shows a significant impact on the declining number of bankruptcies. This is evident, as most of Canadians would rather qualify to file for a consumer proposal after considering the factors that are associated with personal bankruptcy.

Moreover, this is beneficial to the economy, considering the damage that bankruptcy will yield to an individual’s credit repute. Consumer proposal, on the other hand, will also allow you to clear your debt and enables you to lend again as soon as you’re relief from your obligation. Unlike personal bankruptcy, wherein you’ll have a hard time getting loans or even qualifying for a credit application. Hence, comparing bankruptcy over consumer proposals, the latter will give you a more advantageous outcome.

Bankruptcy Overview

Consumer Insolvency

Consumer Insolvency is the situation wherein you are unable to pay the debt that you owe from creditors or lenders. Balance-sheet bankruptcy is when you or your company do not have the capacity to pay off your debts in consideration of your assets. In this case, you may seek debt consolidation which will back you up in paying your debt and paying for the loan amount at a low-interest rate. Another alternative is to make arrangements with your creditors to at least lower your interest and payments each month; this will include disposing of your assets to pay your creditor. Moreover, statutory options are also available which includes a consumer proposal and other debt relief options, or filing for bankruptcy as the last resort.

Business Insolvency

Other factors are affecting your position in a business bankruptcy; this may include business taxation issues, lessor/lessee problems, or other provincial and federal legislation. Issues as such will require formal solutions such as proposal to creditors whether for secured or unsecured debts.

Agriculture Insolvency

This may include a corporation, a certified or non certified organization. Also, if your business liabilities are more than 50%, you will be classified under agricultural insolvency. If you are classified under this insolvency, you must be aware that it requires different application and conditions; this insolvency might have no exemptions depending on the options being reviewed. However, other consideration are being considered on this case.

Total Bankruptcies: Consumer, Business and Corporation

The below statistics show the rate of bankruptcy and consumer proposal by each province and territory. This illustrates the 12-month trends of Canadians qualifying for either consume proposal or bankruptcies.