Annual Consumer Insolvency Rates - Canada vs. Maritime Provinces

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Annual Consumer Insolvency Rates - Canada vs. Maritime Provinces

On September 30, 2014, the Office of the Superintendent of Bankruptcy released its most recent statistics on annual insolvency rates for Canada and the Provinces.  These figures include both consumer bankruptcy and consumer proposal filings for the years 1987 through 2013 and show the significant trend of increasing filing numbers.

For 2013, the annual filing rates were as follows:

Canada - 4.3 per 1,000

New Brunswick - 6.6 per 1,000

Nova Scotia - 6.2 per 1,000

Prince Edward Island - 5.3 per 1,000

The Maritime Provinces and Quebec are leading with the highest insolvency rates.  Ontario and Newfloundland and Labrador are tied with 2013 rates of 4.1 per 1,000 and then the rates drop dramatically in the West from Manitoba to British Columbia

Note that the annual filing rates are per 1,000 of population aged 18 and older.  Consider this, if the average rate is 5.0 per 1,000 of population aged 18 and older and the average lifespan is 80 years, then approximately 31.5% of a current 18 year-old's peer group will have experienced an insolvency event (bankruptcy or proposal) by the time they reach 80 years old.  This may be a bit high because a number of individuals will suffer multiple insolvency events but the conclusion is the same ..... OUCH!