Fewer bankruptcy filings in London – good news!

by Susan Jung on October 5, 2010

in Bankruptcy

The Office of the Superintendent of Bankruptcy recently released the latest 2010 statistics, and yes, fewer people are filing bankruptcy in London.  In the 12 month period ending in June 2010, filings were down 7.5% compared to the same period ending in June 2009.  We have been hearing in the news that we are nearing the end of the recession and this may be an indicator that our London residents are truly feeling the benefit.

Of further statistical note, more people are filing consumer proposals – this is likely due in part to the change in bankruptcy rules that came into effect in September 2009; these new rules can increase both the costs and length of bankruptcy, making a consumer proposal a very attractive alternative.

In the last few months, we seem to be hearing from fewer Londoners; I mentioned this to one of the clients I saw, and he said something interesting: “Well, maybe they have just given up on dealing with their debt, just like the people in London have given up on ever finding a job”.  Maybe, he is right.  I know that Londoners are still struggling – ask some of them about how the end of the recession has helped them get back on their feet and they will tell you that their own personal recession continues – some get quite upset by the reports they hear, since they continue to struggle to find work to feed their families.  Our London Food Bank had to do a special drive to get them through to their next major collection at Thanksgiving – this tells us something that is quite contrary to the reports we hear.

So, what lies ahead for London?  We have heard mutterings about growing fears of a double-dip U.S. recession.  Ontario has a strong reliance on the U.S. Economy – as we read in a recent issue of the London Free Press, many London manufacturers have changed their business models since the recession, but even so, are watching the U.S. situation very closely.

The Free Press made reference to a recent Bank of Montreal study that showed a strong recovery in the Ontario economy in the first half of 2010 – we saw growth in its gross domestic product and growth in employment.  That said, the bank also warned that this growth may wither in the last half of 2010.

Personally, I don’t think we are out of the woods yet – the good news is still good news and I suspect we will see further decreases in the number of bankruptcy filings in the next few months.  I think the trend towards more people filing consumer proposals will continue – in a lot of cases, proposals are simply the most cost effective means for Londoners to deal with their debt. But, I also know that lots of people in London continue to struggle.   If you or someone you know is finding it hard to make ends meet, please know that we can help, and we want to help; please call 310-PLAN or visit us at www.hoyes.com .

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