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BC Bankruptcy Statistics – July 2017

October 11, 2017

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Consumer insolvency filings in British Columbia for the month of July totaled 772, which represents a decrease of 9.9% when compared to July of last year. To put this in perspective at a provincial level, British Columbia (BC) had 23% fewer insolvency filings in July when compared to Alberta, despite having 15% more people. When compared to Nova Scotia, BC has roughly 400% more people, yet only 54% more insolvency filings.

July marks the 14th month in a row where BC had year-over-year declines in consumer insolvencies. Nationally, insolvency filings decreased by 2.4% when compared to July of last year and roughly half the provinces increased their number of filings, while the other half decreased theirs.

The decrease in insolvency filings in BC seems to give the same message as a September 5, 2017 report from Equifax, which shows that payment delinquencies on non-mortgage debt were down to 0.87% in the second quarter of 2017. It is worth noting that, of all the provinces, BC had the lowest delinquency. In addition, a recent unemployment report showed that both Vancouver and Victoria had an unemployment rate of 4.5%, which was the second lowest of the 34 largest cities in Canada.

It appears that even though BC has a high cost of living, the low unemployment rate allows people to remain current on their non-mortgage debts, resulting in fewer formal insolvency fillings. Ironically, for insolvent individuals, dealing with financial issues while employed is the best time as it may allow the individual to avoid bankruptcy by filing a consumer proposal, settling their debts for a fraction of what is owed.

Although formal insolvency filings have decreased, consumer proposals remain popular in BC, accounting for 60% of insolvency filings. Consumer proposals offer people a legal means to avoid bankruptcy and settle with their creditors for a portion of the total amount owed.

Everybody has unique circumstances, which is why it is important to meet with a Licensed Insolvency Trustee to come up with a solution that is tailored for your unique circumstances.

Source for Statistics: Office of the Superintendent of Bankruptcy, Insolvency Statistics

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