NEWS FLASH! June 10, 2010:

Insolvencies decline by 6.5% in March, 2010.

Consumer Bankruptcies were down by 17.0% in March, 2010 compared with the same month in 2009. (8,784/10,578).

Business Bankruptcies were down by 20.5% in March, 2010 compared with the same month in 2009. (403/507).

Proposals were up by 30.9% in March, 2010 compared with the same month in 2009. (4,135/3,159).

For the 12 months ended March 31, 2010 insolvencies were up by 18.1% compared with the 12 months ended March 31, 2009. (156,402/132,405).

The Office of the Superintendent of Bankruptcy comments on the Insolvency statistics are:

The total number of insolvencies (bankruptcies and proposals) in Canada increased by 15.9 percent in March 2010 from the previous month. Bankruptcies increased by 15.5 percent whereas proposals increased by 16.6 percent. Over the last 10 years, the total number of insolvencies filed in the month of March was higher than the total number filed in February, except on one occasion.

The total number of insolvencies in March 2010 was 6.5 percent lower than the total number of insolvencies in March 2009. Consumer insolvencies have decreased by 6.1 percent while business insolvencies have decreased by 14.5 percent.

For the 12-month period ending March 31, 2010, total insolvencies increased by 18.1 percent compared with the 12-month period ending March 31, 2009. This is entirely due to an increase in consumer insolvencies.

Business insolvencies for the 12-month period ending March 31, 2010, fell by 11.6 percent compared with the 12-month period ending March 31, 2009. A reduction in insolvencies in the construction; transportation and warehousing; agriculture, forestry, fishing and hunting; and manufacturing sectors contributed to this decrease.

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

NEWS FLASH! May 5, 2010:

Insolvencies decline by 6.7% in February, 2010.

Consumer Bankruptcies were down by 15.7% in February, 2010 compared with the same month in 2009. (7,606/9,020).

Business Bankruptcies were down by 27.2% in February, 2010 compared with the same month in 2009. (346/475).

Proposals were up by 25.5% in February, 2010 compared with the same month in 2009. (3,546/2,825).

For the 12 months ended February 28, 2010 insolvencies were up by 23.3% compared with the 12 months ended February 28, 2009. (157,324/127,578).

The Office of the Superintendent of Bankruptcy comments on the Insolvency statistics are:

The total number of insolvencies (bankruptcies and proposals) in Canada increased by 9.7 percent in February 2010 from the previous month. Bankruptcies increased by 8.2 percent whereas proposals increased by 13.4 percent. Over the last 10 years, monthly variations between the months of January and February have been mostly positive. Total number of insolvencies filed in the month of February has been lower than the number filed in January only on one occasion over the past 10 years.

In comparison with the same month last year, the total number of insolvencies in February 2010 was 6.7 percent lower than the total number of insolvencies in February 2009. Consumer insolvencies have decreased by 5.7 percent while business insolvencies have decreased by 25.6 percent.

For the 12-month period ending February 28, 2010, total insolvencies increased by 23.3 percent compared with the 12-month period ending February 28, 2009. This is entirely due to an increase in consumer insolvencies.

Business insolvencies for the 12-month period ending February 28, 2010, fell by 11.6 percent compared with the 12-month period ending February 28, 2009. A reduction in insolvencies in agriculture, forestry, fishing and hunting; transportation and warehousing; construction; wholesale trade; and information and cultural industries sectors contributed to this decrease.

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

A trustee in bankruptcy! That must be one of the saddest jobs in the world!

I have heard that comment many times. The first time I heard it I was at a house warming party for friends of ours. There were scores of people at the party. Most of whom my wife and I had never met.

I was in the kitchen when I found myself standing beside an attractive woman of about 35. We smiled at each other as strangers do.

“How do you know the Jacksons?” I asked her.

“I don’t really know them at all. My husband works with Bill Jackson, so that’s why I’m here.”

“And how do you know them?” She asked.

“Same as you. My wife knows Margaret Jackson. Margaret is my wife’s Monday friend. They go walking along the seawall every Monday.”

After a bit more conversation she said, “What do you do?”

“I’m a trustee in bankruptcy.”

That’s when she hit me with it. “A trustee in bankruptcy! That must be one of the saddest jobs in the world!”

I was shocked at her comment and could only manage an inane reply such as, “Oh, it’s not that bad.”

We drifted apart after our brief conversation. I was shaken by her remark about trustees in bankruptcy; one of the saddest jobs in the world? I had received my trustee license about two months ago and was very proud of the accomplishment. I already had my accounting designation and an MBA but the trustee license was by far the most difficult achievement.

A three year course of studies led to a written exam where there was only a 38% pass rate. I was one of the lucky ones who passed. A few months later I had to go through an oral examination by a group made up of an insolvency lawyer, a trustee in bankruptcy and two representatives from the Office of the Superintendent of Bankruptcy. It was a grueling and stressful exam. The questions were fired at me. As soon as I answered one question they went on to a different question, looking for a weakness.

One of their techniques was, when I gave my answer, for one of them to say, “That’s not right! A friend of mine went bankruptcy and he said ……..” Another technique was for one of them, when I gave an answer, to look at me in surprise and say, ”Are you sure of that?”

Finally the ordeal was over. They all thanked me for coming. I escaped from the room.

A few weeks later I received my results. I had passed! I was a trustee in bankruptcy, albeit with a two year restriction. I could only practice under the supervision of an experienced trustee. This is a common restriction as a safeguard that newly appointed trustees are properly qualified.

Later that evening I found myself next to the same woman who had so shaken me up with her sympathetic comment.

The conversation got around to my job again.

“You know, being a trustee in bankruptcy is one of the best jobs in the world,” I told her.

“But how could that be? She asked. “You spend your time with people who are going into bankruptcy. That has to be so depressing!”

“That’s not how it is at all,” I explained. “The people I deal with have been struggling with debt problems, sometimes for years. When they finally come to me they have made a decision to deal with their problem. It’s a happy time for them because they are facing their problem and doing something about it. After they go into bankruptcy all their stress disappears. No more calls from collectors. No more worrying about their wages being garnisheed. They’re on their way to a fresh financial start.”

The woman listened to what I said and then gave me a bright smile. “A trustee in bankruptcy? That must be one of the best jobs in the world!”