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BC Bankruptcy Statistics – June 2017

September 13, 2017

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Consumer insolvency filings in British Columbia for the month of June totaled 918, which represents a decrease of 7.6% when compared to June of last year.

This decrease marks the 13th month in a row where British Columbia had year over year declines in consumer insolvencies. It appears that with British Columbia’s relatively low unemployment rate individuals may be able to resolve, or at least postpone, any formal insolvency filings. Ironically, this may be detrimental to the individual as postponing a formal insolvency filing denies that individual the fresh start they receive by dealing with their financial difficulties through a Licensed Insolvency Trustee.

Nationally, consumer insolvency filings decreased by 6.3% for the month of June when compared to a year ago. Every province showed a year over year decline in insolvency filings when compared to June of last year. On a rolling 12-month basis, the Canadian insolvency filings are now down 1.7% for the 12 months ending June.

Although insolvency filings have steadily decreased over the previous 12 months, we have recently seen three major shifts in policy and government which may act as a headwind for the BC economy moving forward. These new changes include:

  • Interest Rates

    The Bank of Canada has started to increase interest rates with two recent rate increases. It has been widely reported that Canadian personal debt levels are at elevated levels and any increases in debt servicing costs may be difficult to absorb.

  • Canadian Dollar

    With the recent strengthening of our economy and movement in interest rates, the Canadian dollar is becoming stronger. While a strong dollar may benefit consumers, it has the potential to negatively impact some of the industries that benefited from the weak dollar – manufacturing, tourism and film.

  • New Democrat Party (NDP)

    With the recent change in our provincial government from Liberal to NDP, there may be new policies or policy reversals which impact the economy, as well as business confidence and investments.

It is important to note, these are significant changes in policy and it is tough to see how they could not have a major impact on the economy.

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

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