KITCHENER, ON, Jan. 11, 2012 /CNW/ - The Office of the Superintendent of
Bankruptcy reports that 124,886 Canadians filed either a personal
bankruptcy or a consumer proposal in the twelve months ended October
31, 2011, a significant decrease from 2010. Nationally, personal
insolvency filings decreased by 8.1 %. In Ontario the decrease was
"The decreasing bankruptcy rate is great news for Canadians, as the
economy appears to be improving, and unemployment remains moderate"
says Douglas Hoyes, a bankruptcy trustee with Hoyes, Michalos &
Another encouraging sign is that Canadians are increasingly choosing to
file consumer proposals as an alternative to bankruptcy. While
personal bankruptcy filings decreased by 16.7%, 14.2%, and 15% over the
last three months, consumer proposal filings have increased by 7.4%,
7.0%, and 7.4%.
"Consumer proposals allow the hard-pressed consumer the ability to
negotiate settlements with their creditors, a win-win for everyone"
says Ted Michalos, a bankruptcy trustee with Hoyes, Michalos &
The unemployment rate in Canada dropped to a multi-year low of 7.1% in
October, coinciding with the large decrease in personal bankruptcies,
however the unemployment rate has increased each month since then, and
now stands at 7.5%. Continued increases in unemployment will put
further pressure on Canadians' finances, so it is very likely that the
number of consumer insolvencies will begin to increase in 2012.
Hoyes, Michalos recommends that all Canadians take immediate steps to
reduce debt to increase their ability to deal with potential future
increases in interest rates and unemployment. To assist in this
process, information on budgeting and money management is available at www.hoyes.com .
SOURCE Hoyes, Michalos
For further information:
Hoyes, Michalos & Associates Inc., a trustee in bankruptcy firm with offices throughout Ontario, helps people in financial difficulty. Further information can be found at http://www.hoyes.com .
Contacts: Douglas Hoyes, CA, Trustee in Bankruptcy, email@example.com
Ted Michalos, CA, Trustee in Bankruptcy, firstname.lastname@example.org
310-PLAN (310-7526, no area code required) or 1-866-747-0660