Our government has just released bankruptcy statistics indicating that the number of people who filed for personal bankruptcy in North York has decreased since this time last year. Here is what we are looking at:
During the first six months of 2010, 943 people in North York claimed bankruptcy. In addition, 1,042 filed a consumer proposal. This totals 1,985 individuals who made use of our bankruptcy laws between January and June of this year. If we use these numbers to project the remainder of this calendar year, 3,970 people will have filed a bankruptcy or proposal in North York during 2010. How does this compare to previous years?
In 2009, there were 2,388 bankruptcies filed in North York, and another 1,663 proposals, for a total of 4,051. This would mean we could be looking at a modest 2% drop in filings in North York. This number compares to a 13% provincial wide projected decrease in insolvencies.
On the whole, a reduction in the number of personal bankruptcy filings is good news for the economy. This would lead us to believe that more people are working and better able to manage their debt loads.
What’s ahead for the balance of 2010?
I think that bankruptcy rates will continue to decline in North York for the rest of this year. We have stable interest rates and unemployment numbers, so no big changes are expected. Things to watch out for are an increase in interest rates, or the impact of the new HST on consumer spending.
One more important point to reflect on: the good news is that more and more people in North York are choosing to file a consumer proposal as an alternative to bankruptcy. In 2009, 41% of filings in North York were proposals (the rest filed bankruptcy). This year, that percentage has increased to 52%. That’s a big jump. And it’s a good sign, as more people are choosing to negotiate a settlement with their creditors than file for bankruptcy.
If you would like some more information about filing a consumer proposal in North York as an alternative to claiming bankruptcy, call me at 310-PLAN or email me today to arrange a no charge initial consultation.
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