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: Hoyes Michalos and Associates Ontario Personal Bankruptcy Blog

Bankruptcy rate rising faster than ever

By J. Douglas Hoyes, CA, Trustee

The number of personal bankruptcies continues to grow at an ever increasing rate. The number of people who filed for bankruptcy in Canada in 2008 was the highest number on record. Consumer bankruptcy filings in 2008 increased by over 16% in Ontario in 2008. Statistics for cities in Ontario can be found on our Ontario bankruptcy statistics page.

The bad news is that the the number of consumer bankruptcies filed continues to increase at an ever increasing pace. In the twelve month period ending February 28, 2009, consumer insolvencies in Ontario were up almost 18% over the previous year, according to the Office of the Superintendent of Bankruptcy. That follows an 18% increase for the twelve months ended January 31, 2009, so the rate of increase is not slowing. As I write this March statistics have not yet been released, but I expect them to also be up.

At Hoyes, Michalos we monitor call volume on our 310-PLAN bankruptcy help line, so I know that volume is up. In fact, April saw the biggest increase in call volume since January (based on a comparison of this month to the same month last year). Our call volume increased by 26% in February, 34% in March, and by 54% in April. That tells me that there are a lot of people who are in financial trouble, and are looking for help.

Part of that growth is as a result of people who can no longer afford to keep their homes, and can’t sell them because the house value has declined to below the amount owing on the mortgage. Obviously job loss is a factor, as the unemployment rate continues to increase.

Our message continues to be the same: if you are struggling with debt, give us a call at 310-PLAN, or send us an e-mail and we will explain your options, and help you make a plan to deal with your debts. You are not alone.

Full post as published by Hoyes Michalos and Associates Ontario Personal Bankruptcy Blog on May 04, 2009 (boomark / email).