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In statistics just released by the Office of the Superintendent of Bankruptcy, the number of consumer proposals and bankruptcies filed in Toronto increased by 6% in the first six months of 2007, as compared to the first six months of 2006. This compares with an increase of 9% across Ontario, so obviously the economy in Toronto is in better shape than the economy in the rest of the province. |
Douglas Hoyes, CA |
A more detailed review of the statistics shows that the results are not consistent across the Greater Toronto Area (GTA).
Consumer filings increased by 6% in Scarborough, 5% in Brampton, 4% in Mississauga, were virtually unchanged in Etobicoke, and actually fell by 1% in North York.
Even more interesting is the decrease in personal bankruptcies and the huge increase in consumer proposals filed in Toronto.
Personal bankruptcies fell by 1% in Toronto, but consumer proposals increased by 22% across the GTA. In the first six months of 2006, 2,275 residents of Toronto filed a consumer proposal; that number increased to 2,768 in the first six months of 2007.
Why such a large increase in Consumer Proposals?
A consumer proposal is a negotiated settlement with your creditors. Instead of going bankrupt, you make payments over a period of time (usually two to five years), normally for less than the full amount you owe. The creditors get more money than they would have received if you went bankrupt in Toronto, and you avoid bankruptcy and have one manageable monthly payment; it’s a win-win situation.
At Hoyes Michalos we are big believers in consumer proposals, and we believe our efforts to spread the word about this alternative to bankruptcy are paying off. I also believe that most people don’t want to go bankrupt, and a consumer proposal is a perfect way to deal with their debts, and get a fresh start.
If you would like more information about consumer proposals or bankruptcy, call our Toronto team at 310-PLAN (310-7526, no area code required) or E-mail us to arrange a free initial consultation. There is help available, so give us a call, and let’s get started.
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