Bankruptcy statistics in Canada for 2010

Table 1: Total Insolvencies

	Volume			% Change		12-Month Period Ending
	Q1 2010	Q4 2009	Q1 2009	Q4 2009 to Q1 2010	Q1 2009 to Q1 2010	03-31-2010	03-31-2009	% Change
Newfoundland and Labrador	671	582	674	15.3	-0.4	2 698	2 372	13.7
Bankruptcies	637	552	637	15.4	0.0	2 575	2 297	12.1
Proposals	34	30	37	13.3	-8.1	123	75	64.0
Prince Edward Island	136	174	114	-21.8	19.3	599	482	24.3
Bankruptcies	118	155	110	-23.9	7.3	548	459	19.4
Proposals	18	19	4	-5.3	350.0	51	23	121.7
Nova Scotia	1 297	1 344	1 237	-3.5	4.9	5 540	4 849	14.3
Bankruptcies	1 076	1 110	1 037	-3.1	3.8	4 764	4 204	13.3
Proposals	221	234	200	-5.6	10.5	776	645	20.3
New Brunswick	888	898	839	-1.1	5.8	4 023	3 421	17.6
Bankruptcies	735	731	697	0.5	5.5	3 426	2 921	17.3
Proposals	153	167	142	-8.4	7.7	597	500	19.4
Quebec	10 146	10 228	11 136	-0.8	-8.9	43 124	39 133	10.2
Bankruptcies	7 461	7 679	9 105	-2.8	-18.1	34 239	32 155	6.5
Proposals	2 685	2 549	2 031	5.3	32.2	8 885	6 978	27.3
Ontario	14 566	16 439	15 821	-11.4	-7.9	68 239	57 505	18.7
Bankruptcies	8 750	10 548	11 138	-17.0	-21.4	46 341	41 390	12.0
Proposals	5 816	5 891	4 683	-1.3	24.2	21 898	16 115	35.9
Manitoba	686	734	737	-6.5	-6.9	3 119	2 840	9.8
Bankruptcies	518	559	592	-7.3	-12.5	2 434	2 221	9.6
Proposals	168	175	145	-4.0	15.9	685	619	10.7
Saskatchewan	669	601	606	11.3	10.4	2 715	2 128	27.6
Bankruptcies	456	398	452	14.6	0.9	1 959	1 640	19.5
Proposals	213	203	154	4.9	38.3	756	488	54.9
Alberta	2 917	2 750	2 883	6.1	1.2	12 596	9 020	39.6
Bankruptcies	2 202	2 107	2 467	4.5	-10.7	10 126	7 552	34.1
Proposals	715	643	416	11.2	71.9	2 470	1 468	68.3
British Columbia	3 304	3 083	3 274	7.2	0.9	13 644	10 580	29.0
Bankruptcies	2 524	2 379	2 724	6.1	-7.3	10 819	8 717	24.1
Proposals	780	704	550	10.8	41.8	2 825	1 863	51.6
Northwest Territories	11	5	11	120.0	0.0	47	33	42.4
Bankruptcies	8	4	7	100.0	14.3	40	28	42.9
Proposals	3	1	4	200.0	-25.0	7	5	40.0
Yukon	8	15	6	-46.7	33.3	48	34	41.2
Bankruptcies	5	11	5	-54.5	0.0	41	29	41.4
Proposals	3	4	1	-25.0	200.0	7	5	40.0
Nunavut	1	3	1	-66.7	0.0	10	8	25.0
Bankruptcies	1	2	1	-50.0	0.0	8	8	0.0
Proposals	0	1	0	-100.0	--	2	0	--
Canada	35 300	36 856	37 339	-4.2	-5.5	156 402	132 405	18.1
Bankruptcies	24 491	26 235	28 972	-6.6	-15.5	117 320	103 621	13.2
Proposals	10 809	10 621	8 367	1.8	29.2	39 082	28 784	35.8

What you should know about bankruptcy

Administrator of consumer proposals

An administrator of consumer proposals is a trustee in bankruptcy or a person appointed by the
Superintendent of Bankruptcy. British Columbia (1-800-663-7867), Saskatchewan (1-306-933-6520) and Nova Scotia (1-902-424-7020) provide administration of consumer proposals. You may wish to contact the appropriate provincial department. With regard to
trustees in bankruptcy, their names may usually be found in the Yellow Pages under the headings of “Bankruptcy” or “Trustees in Bankruptcy.”

Assets acquired during bankruptcy You must assign to your trustee all assets acquired
during your bankruptcy, including lottery winnings and inheritances, so they can be divided among your creditors.

Assets and property
In a bankruptcy, you must assign all your assets to the trustee, except for exempt property, such as basic furniture and tools-of-trade needed to make your living. Exempt property can vary from province to province. Your trustee can tell you what these are.

Bankrupt
This is the legal status of a person who declares bankruptcy.

Dealing with Debt -- free download consumer guide

Many Canadians face a financial crisis at some time. Most debt problems are easy to solve. Others need professional assistance. The best way to deal with your financial problems is to admit to them and take control before they get out of hand.

This booklet can help you decide whether you have a serious debt problem. It also gives some suggestions for solving your difficulties and avoiding them in the future. The information in this booklet is meant for individuals only and does not apply to corporations.

Readers are reminded that this booklet is not meant to be used for legal purposes. Its only aim is to give information to individuals who are having financial difficulties.

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Possible Solutions - bankruptcy

Contact your creditors

Explain why you can't make your payments and suggest making lower payments over a longer period of time. You may be surprised by how many creditors are willing to accept such arrangements.

Credit counselling

Credit counselling services are available, but may be different from province to province. Contact a local family or community counselling office or a credit counselling association to find out how to get in touch with such a service. If you have difficulty making a budget and sticking to it, counselling may help you.

Debt consolidation loan

You can ask a bank or financial institution about combining or "consolidating" your debts into one loan. In such a case, the bank or financial institution will pay off all your debts and, in return, you make single monthly payments to the bank or financial institution. Make sure to shop around because interest rates are different. It is important to stop buying on credit. Continuing to use credit could make your debt load too great for you to handle.

Consolidation order

If you live in Alberta or Saskatchewan, you may apply for a consolidation order. A consolidation order sets out the amount and the times when payments are due to the court. The court will distribute your payments to your creditors. This part of the Bankruptcy and Insolvency Act (Part X: Orderly Payment of Debts) lets you pay off your debts over three years and frees you from creditor harassment and wage garnishment. Unlike bankruptcy, you do not lose your assets.

Voluntary Deposit scheme

For residents of Quebec, the Voluntary Deposit scheme (better known as the "Lacombe Law") is similar to a consolidation order. You must make a monthly payment based on your income and number of dependants, to the court. This service is usually available at the local courthouse.

Consumer proposal

Under the Bankruptcy and Insolvency Act you may make a consumer proposal to your creditors to reduce the amount of your debts, extend the time you have to pay off the debt, or provide some combination of both.

Bankruptcy

If none of the above methods solves your debt problem, you may choose to declare bankruptcy. Bankruptcy should be a last resort if you cannot meet your financial obligations through affordable payments over a specific period of time.

Bankruptcy is a legal process performed under the Bankruptcy and Insolvency Act. Because of your inability to pay your debts, you assign all of your assets, except those exempt by law, to a licensed trustee in bankruptcy. This process relieves you of most debts, and legal proceedings against you by creditors should stop.

Recognize the danger signals - bankruptcy

You have a debt problem, or are going to have one, if:

• you continually go over your spending limit or you use your credit cards as a necessity rather than a convenience;
• you are always borrowing money to make it from one payday to the next;
• your wages have been garnisheed to pay for outstanding debts;
• you pay only interest or service charges monthly and do not reduce your total debt over many months;
• creditors pressure you for payment, threaten to sue or repossess your car, furniture or television, or hire a collection agency to recover the money for them; or
• utility companies cut off service because your bills have gone unpaid.