Bankruptcy Statistics 2014
How Many People Went Bankrupt in Canada in 2014?
A total of 118,050 Canadians either filed for personal bankruptcy or filed a consumer proposal in 2014, a decrease of -0.5% over 2013. While the personal bankruptcy rate dropped -6.3%, the number of consumer proposals filed increased by +7.6% according to bankruptcy statistics from the federal Office of the Superintendent of Bankruptcy.
The long-term trend in Canadian personal bankruptcy statistics is upward. Bankruptcies are gradually increasing, mainly because of the high levels of debt many Canadians now carry.
Debt rising faster than wealth
Statistics show Canadian consumers piling up debt much faster than the growth in the economy.
As a result, Canadians are much more vulnerable to personal financial trouble.
Consumer debt reached over 163% of annual income in 2013*, meaning that for every $3 the average Canadian earns in a year, they now have almost $5 in debt.
Why should I care?
All those statistics can be baffling and seem meaningless. What they really mean is this: If you think you are OK, because people like you seem OK, your confidence may be falsely based.
- Large numbers of Canadians are Large numbers of Canadians are “living on the edge”
- For them, any drop in income could prevent them from making their debt payments, leading to serious financial problems or even bankruptcy.
- Most mortgage renewals will be at higher interest rates, causing higher monthly payments, because interest rates have been rising for some time now.
- The average Canadian can not survive even a temporary job loss.
Even apart from job loss, many potential events beyond your control could cause you to add to the bankruptcies, if your debts are too great.
What should I do?
Act now to make sure your debts are under control, while economic times are still good.
- Add up your monthly income and expenses, to know where you stand. This is the beginning of budgeting.
- Find opportunities to increase your income and/or reduce your expenses. This will help you to pay down your debts and create a savings reserve.
- Check for signs that you are in financial danger.
- If you are worried about your situation, take our bankruptcy evaluation.
- To ask a personal financial question, or to have a free consultation, contact a Licensed Insolvency Trustee near you.
Personal bankruptcy statistics can be dry, or scary, but you can benefit if you learn to avoid high debts and not become another bankruptcy statistic yourself!