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Personal Bankruptcy Rate in Ontario Jumps: No End Yet to Recession

By J. Douglas Hoyes, CA, Trustee

Back in May I reported on the massive increase in the personal bankruptcy rate in Ontario. I am sad to report that the personal bankruptcy rate continues to jump.

We have just finished the month of June, 2009. June is typically not a very busy month for us here at Hoyes Michalos. Our busy months tend to be March, April and May, as residents of Ontario deal with Christmas bills, tax debts, and other problems.

This year we were very busy in the spring, and we just kept getting busier, and in June we had a record volume month. The number of personal bankruptcy and consumer proposal filings in June at our firm were up 60% over the same month last year. In our history we have never had a 60% volume increase comparing one month to the same month in the previous year.

We also track the number of phone calls we take on our 310-PLAN debt help line, the number of free on-line bankruptcy evaluations that are submitted, and the e-mails we receive with questions at Hoyes Michalos, and in June the volume of Ontario residents asking for our help was also up almost 60% from last year.

Most distressing is that when I look at the rate of increase in both calls and actual filings, the rate of increase is increasing each month. That means the number of people in financial trouble is increasing, and increasing at an ever faster rate. That’s not surprising, given that real estate prices continue to fall, and unemployment remains high. You can analyze the numbers however you want: however you do it, the message is clear: the personal financial situations of the people we meet with are getting worse, not better.

I am a strong believer in doing whatever you can to protect yourself and your family. If the economy continues to worsen, it is likely there will be more job losses, and more people with reduced income, so now is the time to take action to protect yourself. Start by reading our article on Five Tips to Survive the Economic Crisis. Pay down your debt. Reduce your expenses and start saving money. If you can’t deal with your debt on your own, talk to us about your options, including filing a consumer proposal or personal bankruptcy.

Now, more than ever, you must be pro-active, so call us at 310-PLAN (no area code required in Ontario), or complete our free on-line options evaluation so we can e-mail you with detailed solutions, or send us an e-mail to arrange a free initial consultation, and let’s get started.

Full post as published by Hoyes Michalos and Associates Ontario Personal Bankruptcy Blog on July 02, 2009 (boomark / email).