Bankruptcies decline in Cambridge

Bankruptcies decline in Cambridge

The Office of the Superintendent of Bankruptcy has released the bankruptcy and consumer proposal statistics for 2013.  We can now report that the bankruptcy rate in Cambridge continues to fall – but only slightly.

Cambridge Insolvencies

1 less person filed a bankruptcy in Cambridge in 2013 when compared to 2012.

Bankruptcy filings in Cambridge have declined year on year since the economic crisis in 2009, but that trend appears to be slowing or bottoming out.

One thing we do know is that more residents of Cambridge choose to file a Consumer Proposal instead in 2013 – in fact this was the first year that more people choose a proposal as opposed to filing a bankruptcy.

As you can see from the chart, the overall number of people needing help with a debt problem rose from 528 in 2012 to 562 in 2013.

Unemployment numbers from StatsCan show unemployment in Cambridge (6.3%) remains below the average rate for Ontario (7.5%) and low interest rates are remaining stable for the time being.  However, given that we’re hearing about how Canadians have record amounts of debt, what we’re likely seeing is there could be a lot of people who are just about managing to keep their heads above water whilst interest rates are low and jobs are available.

When interest rates increase, we could see further increases in the number of people in financial difficulty as interest rate increases will likely lead to higher payments on mortgages, car loans, credit lines and furthermore, struggling business might be looking at laying off employees.

It’s double trouble potentially – higher bill payments and a drop in income?

My advice in general now is, be prepared.  Keep your debt to a minimum and prepare for a “rainy day”.  If you want to tackle your debt sooner rather than later, call our office today for a free consultation to explore what options you have.

 

 

 

 

Howard has worked in our Cambridge office for many years helping Cambridge residents find solutions for debt problems. As a licensed trustee in bankruptcy Howard is able to explain all your options and find a solution that works for you.

Howard Hayes – who has written posts on Bankruptcy Cambridge: The Insider's View from Howard Hayes.


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