NEWS FLASH! September 5th, 2008:
Huge 19.8% increase in Canadian Insolvencies for the Month of July, 2008 compared with the Same Month in 2007.

Consumer Bankruptcies were up 19.0% compared with the same month the previous year.

Business Bankruptcies were down by 6.4% compared with the same month the previous year.

Proposals were up by 30.0% compared with the same month the previous year.

For the 12 months ending July 31, 2008 Insolvencies are up by 5.0% compared with the previous year; (2008:113,580 - 2007:108,130)

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

NEWS FLASH! August 1st, 2008:
5.5% Increase in Canadian Insolvencies for the Month of June, 2008 compared with the Same Month in 2007.

Consumer Bankruptcies were up 6.2% compared with the same month the previous year.

Business Bankruptcies were down by 12.3% compared with the same month the previous year.

Proposals were up by 8.1% compared with the same month the previous year.

For the 12 months ending June 30, 2008 Insolvencies are up by 4.2 % compared with the previous year; (2008:111,910 - 2007:107,404)

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

NEWS FLASH - July 7, 2008 - The following bankruptcy law changes have gone into force today, Monday, July 7, 2008:

The Wage Earner Protection Program Act (“WEPPA”) and Regulations. The WEPP will compensate individuals for amounts earned, but not paid, during the six months preceding the bankruptcy or receivership of their employers under the BIA. The WEPP will help protect workers by providing a guaranteed payment of a maximum of $2,000 in respect of wages, salaries, commissions or compensation for services rendered, and up to $1,000 in respect of disbursements owing to travelling salespeople incurred should their employer declare bankruptcy. More information can be found at the government website.

Reduction of the student loan discharge period from 10 to seven years. This amendment will apply where the debtor obtains his or her discharge on or after July 7, 2008 (PROVIDED that at the time they filed they had ceased to be student for the required seven years) or becomes bankrupt on or after July 7, 2008. The amendment that will reduce to five years the period a bankrupt will have to wait to make a “hardship” application to have student loan debt or obligation discharged (BIA , s. 178(1.1)) is also now in force. This amendment applies to all debtors notwithstanding when the bankruptcy or the process that results in the bankruptcy is initiated.

Provision of protection of all registered retirement savings plans (RRSP’s, RRIF’s and DPSP’s (Deferred Profit Sharing Plans).
o Contributions made in the 12 months prior to the date of bankruptcy will be recovered (clawed back) for the benefit of the bankruptcy estate for RRSPs in provinces without RRSP exemption laws (BC, Alberta, Ontario, NB, and NS);
o There will be no upper cap on the amount of RRSPs that can be protected;
o There will be no need to set up the RRSPs in a locked in plan to make them eligible for exemption;
o The court will have no jurisdiction to extend the one year claw back period period in an appropriate case.

It is not known when the balance of the new bankruptcy laws will go into force. We have been advise it will be in the later part of this year.

NEWS FLASH! July 4, 2008:

Insolvencies increase slightly in May, 2008 compared with the Same Month in 2007.

Consumer Bankruptcies were down 1.5% compared with the same month the previous year.

Business Bankruptcies were up by 4.1% compared with the same month the previous year.

Proposals were up by 10.3% compared with the same month the previous year.

For the 12 months ending May 31, 2008 Insolvencies are up by 3.6 % compared with the previous year; (2008:111,409 - 2007:107,490)

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

NEWS FLASH! June 4, 2008:

Huge Increase of 18% in Canadian Insolvencies for the Month of April, 2008 compared with the Same Month in 2007.

Consumer Bankruptcies were up 18.3% compared with the same month the previous year.

Business Bankruptcies were up by 9.2% compared with the same month the previous year.

Proposals were up by 19.5% compared with the same month the previous year.

For the 12 months ending April 30, 2008 Insolvencies are up by 4.1 compared with the previous year; (2008:111,291 - 2007:106,883)

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

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.