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 Newfoundland 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 the population aged 18 and older. Consider this, if the average rate is 5.0 per 1,000 of the 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 (personal bankruptcy or consumer 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!
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.