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June 2017 - Personal Bankruptcy & Consumer Proposal Statistics

il y a 10 mois

On August 31, 2017, the Office of the Superintendent of Bankruptcy released its most current statistics on personal bankruptcy and consumer proposal filings for Canadian debtors.  This article focuses on statistics for Personal Bankruptcy and Consumer Proposal filings in New Brunswick, Nova Scotia, and Prince Edward Island.

 

Canada

There were 60,459 personal bankruptcies and 62,718 consumer proposals filed in the 12-months ended June 30, 2017. Bankruptcies were down 5.8% and consumer proposal filings were up 2.6% as compared to the 12-months ended June 30, 2016.

 

New Brunswick

There were 2,742 personal bankruptcies and 1,722 consumer proposals filed in the 12-months ended June 30, 2017. Bankruptcies were down 7.1% and consumer proposal filings were up 14.4% as compared to the 12-months ended June 30, 2016.

 

Nova Scotia

There were 4,128 personal bankruptcies and 1,875 consumer proposals filed in the 12-months ended June 30, 2017. Bankruptcies were up 6.1% and consumer proposal filings were up 17.9% as compared to the 12-months ended June 30, 2016.

 

Prince Edward Island

There were 466 personal bankruptcies and 308 consumer proposals filed in the 12-months ended June 30, 2017. Bankruptcies were down 10.2% and consumer proposal filings were down 7.1% as compared to the 12-months ended June 30, 2016.

Powell Associates Ltd. is a licensed insolvency trustee focused on providing debt settlement, consumer proposal and personal bankruptcy solutions for individuals and businesses. We offer free consultations to review your personal financial situation and practical debt resolution options. Contact us to discuss your situation over the phone or book an appointment to meet us face-to-face in Saint JohnMonctonFrederictonCharlottetown or Dartmouth – it’s your choice.

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January 2018 - Personal Bankruptcy & Consumer Proposal Statistics

il y a 3 mois

On March 29, 2018, the Office of the Superintendent of Bankruptcy released its most current statistics on personal bankruptcy and consumer proposal filings for Canadian debtors.

Canada - there were 57,739 personal bankruptcies and 64,724 consumer proposals filed in the 12-months ended January 31, 2018.  Personal bankruptcies were down 8.8% and consumer proposal filings were up 3.0% as compared to the 12-months ended January 31, 2017.  There were 4,142 personal bankruptcies and 4,449 consumer proposal filed in Canada in the month of January 2018.

New Brunswick - there were 2,490 personal bankruptcies and 1,917 consumer proposals filed in the 12-months ended January 31, 2018.  Personal bankruptcies were down 14.5% and consumer proposal filings were up 19.8% as compared to the 12-months ended January 31, 2017.  There were 130 personal bankruptcies and 147 consumer proposal filed in New Brunswick in the month of January 2018.

Nova Scotia - there were 3,799 personal bankruptcies and 1,937 consumer proposals filed in the 12-months ended January 31, 2018.  Personal bankruptcies were down 11.3% and consumer proposal filings were up 6.9% as compared to the 12-months ended January 31, 2017.  There were 224 personal bankruptcies and 149 consumer proposal filed in Nova Scotia in the month of January 2018.

Prince Edward Island - there were 402 personal bankruptcies and 286 consumer proposals filed in the 12-months ended January 31, 2018.  Personal bankruptcies were down 19.0% and consumer proposal filings were down 6.8% as compared to the 12-months ended January 31, 2017.  There were 24 personal bankruptcies and 20 consumer proposal filed in Canada in the month of January 2018.

 

For a complete update on the Canadian Insolvency Statistics of January 31, 2018, visit our blog post at http://bit.ly/2vonKHd

A Gentler Method Why a Negotiated Consumer Proposal Can Be A More Fair and Reasonable Debt Solution

il y a 4 mois

If you have debt problems you also have options. A Consumer Proposal is "an offer to pay creditors a percentage of what is owed to them or extend the time you have to pay off the debts, or both" and, for some people, it can be a much better and more manageable solution than bankruptcy to resolve your debts, particularly if:

You want to pay your creditors more than they would get in a bankruptcy.

You have high income and could not manage the surplus income payment required in a bankruptcy.

You have equity in assets that would take too long to pay within a bankruptcy.

You have been bankrupt previously.

You want to take advantage of a potentially shorter impact on your credit score.

Fair and Reasonable

You can be as creative as you want in determining the terms of a settlement put forth in a Consumer Proposal as long as it is fair and reasonable and you can get more than 50% of your unsecured creditors (by dollar-value of claims) to accept it. As long as you get over this 50% threshold, it will be binding on all unsecured creditors whether they like it or not. That sounds harsh but it's why this method works for some.

Most consumer proposals are structured as monthly payments over time at less than full payout. Generally, a consumer proposal should provide a higher return or recovery to the creditors than they would obtain in bankruptcy or there is no incentive for your creditors to vote in favour of it. Once the total amount of the settlement is determined and approved, you can pay it out early if you are able to do so and this would accelerate rebuilding your credit.

Also, the fact that you filed a Consumer Proposal will stay on your credit bureau report for 3 years after you have completed all of the terms of your Proposal, which is a shorter period than with bankruptcy.

How a Consumer Proposal Works In Canada

In order to qualify to file a Consumer Proposal, you must have debts of less than $250,000, excluding the mortgage on your principal residence. If you are over this limit, there is another form of proposal that can be filed.

When we review your individual situation, we will consider whether or not a Consumer Proposal (or other forms of proposal) makes sense for you and review the pros and cons of a proposal as compared to bankruptcy and other non-legislated options.

The Government of Canada provides a great explanation of how Consumer Proposals work here. A Consumer Proposal is a formal, legally binding process that is administered by a Licensed Insolvency Trustee (LIT). Once you understand how this method works, an LIT can look at your personal situation and help you decide if this gentler method of dealing with your debts can work for you.

Reset and Restart Personal Bankruptcy and the Relief from the Stress of Unmanageable Debt in Canada

il y a 4 mois

Bankruptcy is usually the last choice for most individuals.  It is good that this process is available because, without it, there might be no relief from the stress of unmanageable debt.

Personal bankruptcy provides a financial reset when other options are not practical.  Even if you don't want to use bankruptcy to resolve your situation, you should still understand how it works.  Don't ignore the option just because of the "B" word.

When assessing an individual's financial situation, we review all relevant facts about assets, liabilities, income, family situation, the cause of financial difficulty and outlook for the future. These are all considerations in determining what options are practically available so that you can choose the one that is best suited to you.

Will I Have to Give Up My Assets?

In most cases, you do not have to give up any assets (unless you want to) if you go through bankruptcy.  If there is equity in assets, you will have to pay the equity with the trustee.

If your income is above a certain threshold, you will have to make payments based on your income level.  How your assets will be dealt with and how much you will have to pay will be reviewed with you before you file for bankruptcy so you understand exactly how bankruptcy would work for you.

Counselling and Support For a Better Future

The bankruptcy process also provides individuals with two (2) mandatory counselling sessions to help you understand how you got into financial difficulty, improve your basic budgeting skills and provide you with information on understanding and starting to re-build your credit.

Sometimes, bankruptcy can actually be the most efficient way to get back on your financial feet and start to rebuild your credit.

Try not to be afraid of this or any other option.  Whether bankruptcy or another method is best for dealing with your debt, the goal for everyone involved is to give you a new beginning and a better future!

December 2017 - Personal Bankruptcy & Consumer Proposal Statistics

il y a 4 mois

On February 28, 2018, the Office of the Superintendent of Bankruptcy released its most current statistics on personal bankruptcy and consumer proposal filings for Canadian debtors.

Canada - there were 57,969 personal bankruptcies and 64,229 consumer proposals filed in the 12-months ended December 31, 2017. Personal bankruptcies were down 8.5% and consumer proposal filings were up 2.8% as compared to the 12-months ended December 31, 2016. There were 4,142 personal bankruptcies and 4,449 consumer proposal filed in Canada in the month of December 2017.

New Brunswick - there were 2,457 personal bankruptcies and 1,904 consumer proposals filed in the 12-months ended December 31, 2017. Personal bankruptcies were down 15.4% and consumer proposal filings were up 23.8% as compared to the 12-months ended December 31, 2016. There were 189 personal bankruptcies and 162 consumer proposal filed in New Brunswick in the month of December 2017.

Nova Scotia - there were 3,807 personal bankruptcies and 1,917 consumer proposals filed in the 12-months ended December 31, 2017. Personal bankruptcies were down 9.2% and consumer proposal filings were up 9.1% as compared to the 12-months ended December 31, 2016. There were 259 personal bankruptcies and 113 consumer proposal filed in Nova Scotia in the month of December 2017.

Prince Edward Island - there were 387 personal bankruptcies and 286 consumer proposals filed in the 12-months ended December 31, 2017. Personal bankruptcies were down 22.6% and consumer proposal filings were down 5.3% as compared to the 12-months ended December 31, 2016. There were 21 personal bankruptcies and 21 consumer proposal filed in Canada in the month of December 2017.

Powell Associates Ltd. is a Licensed Insolvency Trustee (LIT) focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses. We offer free consultations to review your personal financial situation and practical debt resolution options. Contact us to discuss your situation over the phone or book an appointment to meet us face-to-face in Saint John, Moncton, Fredericton, Charlottetown or Dartmouth - it's your choice.