Personal Bankruptcy Rate Increases in Ontario in 2005
In statistics just released by the Office of the Superintendent of Bankruptcy, the personal bankruptcy rate in Ontario increased by 3.2% in 2005. 31,301 individuals filed personal bankruptcy, and a further 8,791 people filed a consumer proposal. This compares to 30,742 personal bankruptcies in Ontario in 2004, and 8,143 consumer proposals in Ontario in 2004.
The personal bankruptcy rate in Ontario is increasing due to the high level of debt carried by Ontario residents. We know that the average Canadian now owes 118% of what they earned last year, the highest level ever. As long as interest rates stay low and there are no unpleasant surprises, most people can afford to make their monthly payments. For families at their limit, however, a high debt-to-income ratio means they are less able to deal with life's unexpected financial traumas.
In Canada, consumer bankruptcies and proposals increased by 1.2% in 2005, indicating that the rate of increase in personal bankruptcies was higher in Ontario than in the rest of the country.
The personal bankruptcy rate in Ontario is increasing due to the high level of debt carried by Ontario residents. We know that the average Canadian now owes 118% of what they earned last year, the highest level ever. As long as interest rates stay low and there are no unpleasant surprises, most people can afford to make their monthly payments. For families at their limit, however, a high debt-to-income ratio means they are less able to deal with life's unexpected financial traumas.
In Canada, consumer bankruptcies and proposals increased by 1.2% in 2005, indicating that the rate of increase in personal bankruptcies was higher in Ontario than in the rest of the country.
posted by J. Douglas Hoyes, CA, Trustee @ 7:13 PM
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