In 2007 the rate of personal bankruptcy and consumer proposal filing increased by 8.2%. Consumer bankruptcies increased from 29,851 in 2006 to 31,409 in 2007 for an increased of 5.2%.
The number of consumer proposals filed in Ontario had a significant increase, from 9,381 in 2006 to 11,025 in 2007, and increased of 17.5%.
Ontario’s overall increase of 8.2% was far higher than the rate of increase in Canada of only 2.5%, reflecting significant job losses in manufacturing, construction, agriculture and natural resources in Ontario.
Ontario’s employment growth in 2007 was weak at 1.6%, and the unemployment rate rose to 6.4%, which was above the Canadian average.
It is impossible to predict what will happen in 2008, but if interest rates increase and the economy heads into a recession, the bankruptcy rate in Ontario will probably continue to increase.
2007 Ontario Bankruptcy Statistics
According to statistics released by the Office of the Superintendent of Bankruptcy, the personal bankruptcy rate in Ontario increased in 2007, as seen in the chart below. As the chart indicates, the personal bankruptcy rate in some Ontario cities fell, but the rate increased in most parts of the province, leading to an increase in the personal bankruptcy rate for the entire province of Ontario.
Chart assembled from sources believed to be accurate. Please see the source noted above for personal bankruptcy statistics for other cities in Ontario. For further information, please contact a nearby expert.