BC Bankruptcy Statistics – January 2018

There were 823 consumer insolvency filings in British Columbia (BC) during the month of January. This represents a 4.2% increase when compared to January of last year. Although this is an increase from last year, this is still below the average monthly filings experienced in 2017.

While insolvency filings and the BC unemployment rate remain low, the headwinds facing the Canadian economy are building. It will be a tough balancing act for the Bank of Canada to navigate through the remainder of the year.

On one hand, keeping interest rates low will hurt the dollar and the purchasing power of every Canadian. On the other, raising interest rates will negatively impact the overindebted consumer and government. Not to mention, high interest rates will slow the already soft real estate sector impacting a sizable portion of the economy.

In addition, there are other factors which could negatively affect the Canadian economy, including:

• NAFTA negotiations;
• Provincial trade disputes;
• Inflation picking up; and
• High gasoline prices.

Although it may seem counter intuitive, the best time to file a consumer proposal is when unemployment is low and debts are high. A proposal enables an individual to settle their debts for a fraction of what is owed (try our debt comparison calculator). Being employed may allow an individual to make a proposal to creditors to settle their debts and avoid bankruptcy.

Source: Office of the Superintendent of Bankruptcy, Insolvency Statistics