Have you considered filing for bankruptcy or for a consumer proposal in Canada? If so, you’re far from the only one.

Insolvency statistics show that bankruptcies and consumer proposals continue to be popular debt management options for Canadians throughout 2018.

Here’s exactly how many Canadians are filing for bankruptcy or filing for a consumer proposal:

2017 (Total Across Canada)

Total: 125,807

Bankruptcies: 60,669 (Personal Bankruptcies: 57,969, Business Bankruptcies: 2,700)

Consumer Proposals: 65,138 (Personal Consumer Proposals: 64,229, Business Consumer Proposals: 909)

Top Three Highest Provinces:

Quebec – Total: 43,731, Bankruptcies: 24,210, Consumer Proposals: 19,521

Ontario – Total: 39,045, Bankruptcies: 15,968, Consumer Proposals: 23,077

Alberta – Total: 13,481, Bankruptcies: 5,139, Consumer Proposals: 8,342

First Quarter of 2018: January, February, March

Total (Canada): 31,327

Bankruptcies: 13,863 (Personal: 13,163, Business: 700)

Consumer Proposals: 17,464 (Personal: 17,234, Business: 230)

Top Three Highest Provinces:

Quebec – Total: 11,301, Bankruptcies: 5,664, Consumer Proposals: 5,637

Ontario – Total: 9,507, Bankruptcies: 3,638, Consumer Proposals: 5,869

Alberta – Total: 3,463, Bankruptcies: 1,227, Consumer Proposals: 2,236

Second Quarter of 2018: April, May, June

Total (Canada): 33,534

Bankruptcies: 15,450 (Personal: 13,163, Business: 700)

Proposals: 18,084 (Personal: 17,234, Business: 230)

Top Three Highest Provinces:

Quebec – Total: 11,109, Bankruptcies: 5,930, Consumer Proposals: 5,179

Ontario — Total: 10,435, Bankruptcies: 4,202, Consumer Proposals: 6,233

Alberta – Total: 3,884, Bankruptcies: 1,343, Consumer Proposals: 2,541

Compared to the first and second quarters of 2017, the first half of 2018 is keeping pace. The total number of insolvency filings are slightly down, as are the total number of bankruptcies filed. However, the total number of consumer proposal filings are slightly up, indicating that more Canadians are choosing this option.

If you are considering filing for a consumer proposal or for bankruptcy, it’s important to know the difference.

Consumer proposals:

• Are for unsecured debts less than $250,000 (not including mortgage debt).
• Make a settlement offer to your creditors that the majority of creditors must accept.
• Generally, leave assets intact.

Bankruptcies:

• Are for any amount of debt.
• Clear most unsecured debts and potentially some secured debts, such as a mortgage or car loan, if the assets are seized.
• Could result in losing assets, such as your home or your car.

For more differences, see this blog: How is a Consumer Proposal Different from a Bankruptcy?

Both consumer proposals and bankruptcies must be filed with a Licensed Insolvency Trustee (LIT, or formerly known as a Bankruptcy Trustee). However, they will take a portion of the fee that you pay. They aren’t necessarily ‘on your side’ — they are more of a facilitator for the process.

Before you file, you need an advocate who represents you and only you. At DebtCare, we provide just that. We can represent you when filing for bankruptcy or for a consumer proposal, and we can also make sure you have eliminated all other debt consolidation strategies before filing.

Contact us today for a free consultation. Call 1-888-890-0888.