Personal Bankruptcy Filing Rate Increases in Ontario in 2007
After seeing a decline in the number of consumer filings in 2006, the Office of the Superintendent of Bankruptcy reports that the number of consumer bankruptcies and consumer proposals increased in Ontario 2007 by 8.2%. In 2007, 31,409 Ontario residents filed personal bankruptcy, and 11,025 Ontario residents filed a consumer proposal, for a combined 42,434 consumer filings, the largest number on record.
The rate of growth in consumer filings in 2007 far surpassed the Canadian average, reflecting significant job losses in manufacturing, construction, agriculture and the natural resource sector in Ontario.
Cities more reliant on manufacturing were hardest hit. Windsor, for example, reported an increase in consumer filings of 18%.
Ontario's employment growth in 2007 was a weak 1.6% and the unemployment rate rose to 6.4%, above the Canadian average of 6.0%. Of greatest concern was the large job losses in December, which may be a harbinger of things to come.
Weakness in the goods-producing sector (-5.6%) in Ontario in 2007 was offset by gains in the service producing sector (+3.6%). In the goods-producing sector Ontario experienced losses in manufacturing, agriculture, natural resources and construction. The manufacturing sector in Ontario was down 6.5% (-64,000 jobs) in 2007 primarily in motor vehicle and parts manufacturing, fabricated metal and wood products manufacturing.
Continued pressure from a high Canadian dollar, high energy prices and uncertainty over the US economy are expected to put added strain on Ontario's manufacturing industry. Economic and employment growth are expected to slow and unemployment is expected to increase. Given this, we can expect to see continued growth in consumer filings in 2008.
For many residents of Ontario a consumer proposal or a personal bankruptcy may be the only logical solution to their money problems in 2008.
For more information on personal bankruptcy statistics for 2007 see our article bankruptcy statistics for 2007 and 2006, with detailed personal bankruptcy statistics for all major cities in Ontario.