NEWS FLASH! May 2, 2008:

Canadian Insolvencies Fell by 5.5 % for the Month of March, 2008 compared with the Same Month in 2007.

Consumer Bankruptcies were down 6.1% compared with the Same Month the Previous Year.

Business Bankruptcies were down by 8.1% compared with the Same Month the Previous Year.

Proposals fell by 2.8% compared with the Same Month the Previous Year.

For the 12 months ending March 31, 2008 Insolvencies are up by 3.0 compared with the previous year; (2008:109,622 - 2007:106,415)

For more information and more detailed analysis please refer to this site.

NEWS FLASH! April 2, 2008:
Canadian Insolvencies Rose by 10.5 % for the Month of February, 2008 compared with the Same Month in 2007.

Consumer Bankruptcies were up 12.0% compared with the previous year.

Business Bankruptcies were down by 5.0% compared with the previous year.

Proposals rose by 10.2% compared with the previous year.

YTD insolvencies are up by 6.8%; (2008:18,751 - 2007:17,483)

For more information and more detailed analysis please refer to this site.

NEWS FLASH! February 29, 2008:
Canadian Insolvencies Rose by 3.9 % for the Month of January, 2008 compared with the Same Month in 2007.

Consumer Bankruptcies were up 4.0% compared with the previous year.

Business Bankruptcies were down by 1.1% compared with the previous year.

Proposals rose by 5.1% compared with the previous year.

The regional disparity continues. In the West insolvencies were down 7.7% for January, 2008 compared with January, 2007. In the East they were up by 6.8% for the same period. These statistics, for the West, reflect the strong demand and high prices for petroleum, wheat, metals and other commodities, driven by fast-growing Asian economies like China and India.

In eastern Canada the predominant influence is weak demand and profitability for manufacturers, driven by a slowing U.S. economy, a high Canadian dollar and stagnation in the region’s big forest-products industry.

For more information and more detailed analysis please refer to this site.

NEWS FLASH! February 6, 2008:
Canadian Insolvencies Rose by 2.1 % for the Year Ended December, 2007 compared with the previous year.

Consumer Bankruptcies were up 0.7% compared with the previous year.

Business Bankruptcies were down by 6.6% compared with the previous year.

Proposals rose by 10.0% compared with the previous year.

The regional disparity continues. In the West insolvencies were down 16.5% for 2007, while in the East they were up by 5.0% in 2007. These statistics, for the West, reflect the strong demand and high prices for petroleum, wheat, metals and other commodities, driven by fast-growing Asian economies like China and India.

In eastern Canada the predominant influence is weak demand and profitability for manufacturers, driven by a slowing U.S. economy, a high Canadian dollar and stagnation in the region’s big forest-products industry.

For more information and more detailed analysis please refer to this site.

Canadian Insolvencies rise by 3.5 % in November, 2007.

The insolvency rate (consumer bankruptcies, business bankruptcies and proposals) rose by 3.5% in November, 2007 compared with the same month the previous year.
Consumer Bankruptcies were up 2.1% compared with the same month last year.

Business Bankruptcies were down by 3.1% compared with the same month last year.

Proposals rose by 10.2% compared with the same month last year.

Year to Date Insolvencies rose by 2.4% compared to the same period last year.

Consumer Bankruptcies were up 1.1% compared with the same period last year.

Business Bankruptcies down 6.5% compared with the same period last year.

Proposals rose 10.7% compared with the same period last year.

Alberta and BC experienced double digit increases of 12.6% and 10.3% in the Consumer Bankruptcy Rate in November, 2007 compared with November, 2006. This reverses a trend over the last few years of a steady fall in the consumer bankruptcy rate caused by the red hot economies and low unemployment in these two provinces.

For more information and more detailed analysis please refer to this site.

NEWS FLASH, DECEMBER 14, 2007- It was announced today that Bill C-12 - an Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act, the Wage Earner Protection Program Act and Chapter 47 of the Statutes of Canada, 2005 has received Royal Assent.

This has caught everyone by surprise as the Senate was scheduled to hear 21 more witnesses in February, 2008. It is also surprising given that when the last bankruptcy bill was rammed through a few years ago the Senate committee expressed its disappointment in the “fast tracking” of the legislation that did not allow it to hear the many groups that were scheduled to make representations. As a result the Senate Committee received assurances that there would be the opportunity for the Senate Committee to review the legislation in early 2006 and that the legislation would not come into force until June 30, 2006 at the earliest. The Minister of Industry, David L. Emerson, confirmed this in a letter dated November 24, 2005.

Speculation is that a federal election is imminent. If Parliament is dissolved for the election before the Bill received Royal Assent, the next Parliament would have to start over from the beginning, with a new Bill. No one in Parliament wants this, because of the election advantage of having the new wage protection scheme passed into law.

This bill was passed without changes. A summary of the major changes affecting consumer bankruptcy is given here. Many of the flaws in Bill C-55 were corrected by Bill C-12, but other flaws exist which will go uncorrected.

For more information please refer to the following:
• Government of Canada News Release;
• Senate Report.

NEWS FLASH! December 5, 2007: The bankruptcy statistics for October, 2007 were released on the Internet today. The insolvency rate (consumer bankruptcies, business bankruptcies and proposals) rose by 5.0% in October, 2007 compared with the same month the previous year.

The regional disparity continues. In the West insolvencies are down 12.2% for the year to date, while in the East they are up by 9.2% year to date. These statistics, for the West, reflect the strong demand and high prices for petroleum, wheat, metals and other commodities, driven by fast-growing Asian economies like China and India. In eastern Canada the predominant influence is weak demand and profitability for manufacturers, driven by a slowing U.S. economy, a high Canadian dollar and stagnation in the region’s big forest-products industry.

Consumer Bankruptcies were up 5.1% compared with the same month last year.

Business Bankruptcies were down by 12.8% compared with the same month last year.

Proposals rose by 9.8% compared with the same month last year.

Year to Date Insolvencies rose by 2.3% compared to the same period last year.

Consumer Bankruptcies were up 0.9% compared with the same period last year.

Business Bankruptcies down 6.8% compared with the same period last year.

Proposals rose 10.5% compared with the same period last year.

For more information and more detailed analysis please refer to this site.

NEWS FLASH! November 1, 2007: The bankruptcy statistics for September, 2007 were released on the Internet today. The insolvency rate (consumer bankruptcies, business bankruptcies and proposals) fell by 2.8% in September, 2007 compared with the same month the previous year.

Insolvencies fell in September, 2007 by 2.8%,
Year to Date Insolvencies rose by 2.0%.

Consumer Bankruptcies were down 2.1% compared with the same month last year.

Business Bankruptcies were down by 10.4% compared with the same month last year.

Proposals declined by 3.3% compared with the same month last year.

Year to Date Insolvencies rose by 2.0% compared to the same period last year.

Consumer Bankruptcies were up 0.4% compared with the same period last year.

Business Bankruptcies down 6.2% compared with the same period last year.

Proposals rose 10.6% compared with the same period last year.

For more information and more detailed analysis please refer to this site.

News Flash! October 25, 2007. Bankruptcy Reform is back on track. The Conservative government reinstated the Bankruptcy Reform package on Thursday, October 25, 2007, in a motion that was approved by all parties. The bankruptcy package had died when parliament was last prorogued.

Bankruptcy Reform in Canada has been subject to many delays since it was rushed through the House and the Senate on November 25, 2005, just before the adjournment of parliament for an election that brought the Harper Conservatives to power.

The major changes proposed by Bankruptcy Reform are:
1. Guaranteed payment for wages and vacation pay owing, in the six months prior to bankruptcy or a receivership, to a maximum of $3,000 per employee;
2. All registered retirement savings plans and registered retirement income funds will be exempt from seizure in a bankruptcy. Currently only employer sponsored plans and retirement savings plans offered through insurance companies are exempt from seizure, in the provinces of BC, Alberta, Ontario, New Brunswick, Nova Scotia and PEI. The other provinces have passed provincial legislation to make RRSPs and RRIFs exempt;
3. Student Loans will be eligible to be written off in a bankruptcy if the student has terminated his studies seven or more years ago. This is a decrease from the current ten-year wait;
4. Debtors who have surplus income, in accordance with directives issued by the Superintendent of Bankruptcy, will no longer be eligible for an automatic discharge after nine months. They will be required to stay in bankruptcy a further 12 months and to continue making surplus income payments to the trustee.

Second time bankrupts, with surplus income, will be required to stay in bankruptcy and make surplus income payments for a total of three years. This is tougher than the current laws, which sees a second time bankrupt discharged on a sliding scale, with postponement of discharge tied largely to how long it was between bankruptcies.

The Senate is expected to hold exhaustive reviews of the proposed legislation including hearing submissions from stakeholders and other interested parties.

You can read more about Bankruptcy Reform at this link.

NEWS FLASH! October 2, 2007: The bankruptcy statistics for August, 2007 were released on the Internet today. The insolvency rate (consumer bankruptcies, business bankruptcies and proposals) rose by 4.8% in August, 2007 compared with the same month the previous year.

The rise in the insolvency rate was driven by Quebec and Ontario with increases of 5.8% and 10.8%.

Current Month Statistics:
Consumer Bankruptcies are up 2.9% compared with the same month last year.

Business Bankruptcies were up by 7.3% compared with the same month last year.

Proposals rose 11.4% compared with the same month last year.

Year to Date Statistics:
Year to Date Insolvencies rose by 2.6% compared to the same period last year.

Consumer Bankruptcies were up 0.8% compared with the same period last year.

Business Bankruptcies down 5.8% compared with the same period last year.

Proposals rose 12.5% compared with the same period last year.

For more information and more detailed analysis please refer to this site.