The Office of the Superintendent of Bankruptcy released the latest round of bankruptcy numbers, and they aren’t pretty. Personal bankruptcies are way up. In the Waterloo region, which includes Cambridge, the personal bankruptcy rate was up by 55% in the last three months, as compared to the same period last year. The bad news is that that’s the highest rate of increase in Ontario.
Not surprisingly, the numbers from across Canada are dismal. There was also a massive increase in the personal bankruptcy rate throughout Canada, with bankruptcy filings up about 36% across Canada. Why is the bankruptcy rate increasing faster in Cambridge than in the rest of Canada?
That was a question I was asked today on the Gary Doyle show on 570 News (you can listen to my thoughts here). I said that I believe that other areas of Canada got hit in the recession earlier. For example, in the bankruptcy rate in Windsor was up about 44%, which is very high, but still less than our area, presumably because the automotive industry in Windsor got hit a year ago. In Cambridge, and in Waterloo Region, we have more white collar jobs, and we are closer to Toronto, so we haven’t suffered quite as much. Until now.
As I explained to Gary Doyle, the September numbers spiked upwards due to the new bankruptcy rules that made bankruptcy more expensive for some, so some people rushed to file before the new rules came into force on September 18. The main reason for the higher numbers, of course, is the fact than unemployment is high, and debt levels are high.
What does this mean to you? You are not alone. If you have more debt than you can repay, there is help available. Give my office a call in Cambridge at 519-622-3773 or 310-PLAN, or e-mail us and we will review your options and help you determine a solution. Call us today.
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