Are you suffering from significant financial issues?
If so, you should look at all the debt-relief options at your disposal.
This includes debt settlements, debt consolidation, budgeting, and even a consumer proposal.
If nothing helps, your last option is bankruptcy.
You are not alone.
Many Canadians have to file for bankruptcy every single year.
The good news is that things are on a downward trend, though many experts predict things will increase after 2020.
So, let’s take a look at some of the key bankruptcy statistics in Canada.
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The current consumer bankruptcy rate
The most recent bankruptcy rate statistics in Canada are for the year 2019.
A survey found that 1.8 out of every 1,000 Canadians filed for bankruptcy.
Funnily enough, this figure was a decrease from 2018, where it sat at 1.9.
The current trend sees a downward spiral, especially when compared to 2010.
10 years ago, the bankruptcy rate was 3.5, so it has almost halved in that time.
Whether or not this will continue depends on how severely Canadians were affected by everything that’s gone on in 2020.
Total number of bankruptcies decreased
If we look at April 2020 compared to April 2019, the downward trend continues.
Statistics show that bankruptcies in Canada have dropped by 41.5%.
To add to this, consumer proposals have also decreased by 37.2%.
In total, this shows an overall insolvency decrease of 38.7% between April 2019 and April 2020.
These are the most updated statistics provided to the public, so we will have to wait for the May and June comparisons.
What can we learn from these bankruptcy statistics?
After seeing the stats, you are probably more worried than ever.
It seems as though bankruptcies are on the decline, and yet you’re in a position where one may be the only option.
However, consider the population of Canada is 37.59 million.
Now, with a bankruptcy rate of 1.8 per 1000 Canadians, this leads to a total number of 67,644 people filing for bankruptcy last year.
To add to this, another 105,224 Canadians filed a consumer proposal.
So, this leads to a total of 172,868 people filing for insolvencies in the country.
In conclusion, you’re most certainly not alone as a large number of Canadians are filing for bankruptcies or consumer proposals.
Still, you can take some heart from the fact that these figures are on the decline.
This could indicate that financial hardship is going down, meaning you can avoid debt once you’ve been discharged from your bankruptcy.
Get in touch for professional debt-relief help
If you’re having money issues, you need to take action as soon as possible.
Contact us, and we can help you break free from your debts before bankruptcy even becomes an option.
Alternatively, we are a Licensed Insolvency Trustee, meaning we can handle your bankruptcy proceedings.
All you have to do is book a consultation with us today.
Give us a call or fill in our online evaluation form to learn more.
Canadian Bankruptcies
How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?
