The Office of the Superintendent of Bankruptcy just released its numbers for the first six months of 2011 and it appears in London and the surrounding area, the number of bankruptcies filed is down 9% from 2010. Is this good news? Are people not in as much financial trouble? Will trustees be finding themselves out of work?
The answer to all those questions is likely not. Although bankruptcy filings are down, consumer proposal filings have increased much more dramatically. So to make the number story short, more people are opting to repay more of their debt back.
So as a trustee, I do not feel my job is in jeopardy. There are still many people out there experiencing hardship and uncertainty – in their job situations, their debt repayments and other family situations that cause sleepless nights and constant worrying.
Most people who visit me for an assessment of their situation have accumulated debt over a long amount of time. They have sometimes made poor choices about what they would pay first – a mortgage or a line of credit. They have purchased a house or car and experienced payments that are much too large for their cash flow/budget. They need relief from the large amount of funds they need to pay regular living expenses and debt repayment.
A consumer proposal is proving to be a popular choice because they can usually keep their houses and vehicles and offer more to their creditors than what would be available in a bankruptcy. They feel good about their choice of compromising their debt and they are committed to keeping their payments something they can afford. It has made them look more carefully at what decisions they make regarding purchases and credit.
For more information about all of these numbers, please feel free to have a look at our consumer proposal website, or take a peak at our bankruptcy statistics page.
If you feel stressed by financial worries, calling us for an assessment of your situation might start the journey to getting control of your finances. The numbers show more people are starting a process through a consumer proposal that offers them debt relief. We look forward to helping you.
You must log in to post a comment.