How Many People Go Bankrupt in Ontario?

March 28, 2011

Question: How many people went bankrupt in Ontario in 2010?

Answer: In 2010, exactly 33,000 residents of Ontario filed personal bankruptcy.  That’s a decrease of 29% from the 46,521 that filed bankruptcy in 2009.

In addition, there were 23,619 consumer proposal filings in Ontario in 2010, an increase of 16% over the 20,414 proposal filings in 2009.

In 2009 the federal government changed the rules to make bankruptcy more expensive for people with surplus income, and as a result more residents of Ontario have chosen to file a consumer proposal as an alternative to bankruptcy.

Here’s an interesting statistic: the 23,619 consumer proposals filed in Ontario in 2010 represented 56% of all proposals filed in Canada, making Ontario the largest proposal filing province by a wide margin.

The total filings (proposals and bankruptcies) were 66,935 in 2010, a decrease of 15.4% from the 56,619 filings in 2009.

Ontario had a better performance than the rest of Canada, where the total rate only dropped by 11%, due to Ontario’s strong economy.

However, if economic activity in Ontario slows, or if interest rates increase, bankruptcy filings in Ontario in 2011 could again begin to increase.

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