Archives for May, 2009

2008 was a record year for personal bankruptcies, and 2009 has started at an even faster rate of growth for residents of Toronto. According to bankruptcy statistics just released by the Office of the Superintendent of Bankruptcy, in the first quarter of 2009 personal bankruptcies in Toronto increased by 33%, and the number of consumer proposals filed increased by almost 53%. In total personal insolvencies increased by almost 40% in Toronto in the first three months of 2009.

Comparing the first three months of 2009 to the same period last year, personal bankruptcies in Ontario are up by 38%, and consumer proposals are up by 48%, for an overall growth rate of 41%.

Not surprisingly the totals in Toronto are comparable to the provincial average, since Toronto is the largest city in the province.

I’ve been helping people in financial trouble for over 20 years, and in all of those years I don’t ever remember a time when bankruptcies increased at such an alarming rate. Clearly we are at a very negative part of the economic cycle, despite the happy talk you may hear in the media.

What does this mean for you, a resident of Toronto, with financial problems?

First, understand that you are not alone. Over the last year almost 21,000 residents of Toronto have filed bankruptcy or a consumer proposal.

Second, the bankruptcy numbers continue to increase, so we should prepare for more problems over the next few months. Read our five tips to survive the recession.

Finally, there are actions you can take to protect yourself. We know the economy is in bad shape. We all risk getting laid off or losing our jobs. If you are working, cut your expenses, pay off debt, and save money.

If you already have more debt than you can handle, call our help line today at 310-PLAN (no area code required), or e-mail us today to arrange for a no charge initial consultation where we will review your options for dealing with debt. The statistics prove that now is the time to take action to deal with your debts.