• government of canada bankruptcy statistics

    Canadian Bankruptcy Statistics are on the rise -2007

    In light of the current economic news, I thought I would do a little search and see what Government Canada was reporting on bankruptcy statistics in Canada.

    Bankruptcy Statistics can be found on the Office of the Superintendent of Bankrutpcy Canada website.

    I was curious to know if all of the noise about people being out of control credit wise was really true, or if the news companies just needed something to talk about.

    According to the Government of Canada statistics, bankruptcies were on the rise in Canada in 2007. Year ends September 30, 2007
    SEE: Govt of Canada - Bankruptcy Statistic Tables

      Canadian Consumer Insolvencies
    • Q4 - 2006 - Filings 24,274
    • Q1 - 2007 - Filings 25,352
    • Q2 - 2007 - Filings 26,363
    • Q3 - 2007 - Filings 24,563
      1 year total -Filings 100,552

    NOTE: The definition of Insolvencies is Bankruptcies + Consumer Proposals.

    The province with the highest year over year increase in insolvencies was Ontario who had a 7.4% increase. Ontario went from 39,700 consumer insolvencies in 2006 to 42,700 consumer insolvencies in 2007

    The province with the best year over year decrease in insolvencies was Alberta who had a 14.8% decrease. Alberta went from 7,000 consumer insolvencies in 2006 to 5,900 consumer insolvencies in 2007.

    From an overall glance, most of the provinces saw a decrease in bankruptcies in Q3-2007 which was nice to see.

    100,552 ankruptcies per year in Canada?
    According to Statistics Canada the estimated population of Canada in 2007 was 33,091,228.

    According to these figures there are 33,091,228 / 100,552 = 1 bankruptcy filed for every 329 people in Canada. Or .3% (.003) of the population declares bankruptcy each year.

    This equals approx 502,000 bankruptcies filed over the last 5 years based on last years numbers. Half a million bankruptcies.!!

    On the business side of bankruptcy, this kind of volume is great for bankruptcy attorneys. Bankrutpcy Trustees love it when you declare bankruptcy. You can see there ads all over the place.

    On the personal side of bankruptcy, this is a horrific situation for Canadian families.

    BANKRUPTCIES MEAN DAMAGE TO THE FAMILY
    This means that 100,552 Canadian families had to suffer through financial hard ship for a period of time prior to declaring bankruptcy. I can also imagine that this meant alot of failed marriages, and harm done to the family with all of the fighting and worry about money.

    I hope that in the next few years to come, we as a nation will have the learned many lessons from our gorging on credit. 500,000 bankruptcies in 5 years will hopefully teach Canadians a good lesson about credit management.



 
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3 Comments
On May 3, 2009, kelly Said:
something that is not brought out to the open is that its not always the individual that is the cause , with the banks all forcing the company owners to give personal gaurentes on loans , then for the company to be short paid on work by some big clients and the bank interm calls the loans on thier clients company with a demand and , yes they cant pay as their clients short paid or when bankrupt, so the bank goes after the company owners on the personal gaurentees, which in term bankrupts the owners . I think there is not enough experiance in the managment personel of the banking system, there is not enough resurch into events or the ability for comparisums to perform resurch , its awfull that the decision of one or two persons in a bank can ruin the lives for hundreds of pepole due to an hasty unreasurched decision. canada is fallin this assistance of the banks, we need some one to monotor and make the banks acountable for their actions espcially with todays economy.
On Dec 23, 2008, Joanne Ford Said:
Great article. I am surprised the numbers are not a bit higher. At the same time it's sad. People continue to use credit and live above their means. A little money management and budgeting can make such a difference. Bankruptcy is just an easy way out for some people. People need to be educated about their finances because a change in mindset is what's needed.

Date Posted: Dec. 23. 2008
On Jan 26, 2008, Morris Bateman Said:
I had no idea of those numbers.. While I have known a few people over the years who have declared bankruptcy, that is only a very few compared to 100000 people.
Probably most people don't openly admit that they've declared bankruptcy.
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