Articles

A Closer Look at September 2022 Insolvency Stats

David Wood · November 21, 2022 ·

Consumer insolvencies in BC increased in September 2022 overall by 33.5 percent from September 2021. Consumer proposals increased 52.9 percent while bankruptcies decreased 21.3 percent.

Graph showing insolvency data in BC for 2022 — Source: Government of Canada

Consumer insolvencies in all of Canada for August increased 22.1 percent over the same period last year. BC accounted for 9.96 percent of all consumer insolvencies in Canada in September 2022.

The proportion of proposals in consumer insolvencies in BC accounted for 84.6 percent of all BC insolvencies September 2022 while they accounted for 76.1 percent for all insolvencies across Canada for the same period.

The proportion of proposals in consumer insolvencies in BC was 77.6 percent during the 12-month period ending September 2022, up from 73.7 percent during the 12-month period ending September 2021. It indicates the popularity of consumer proposals as a way for consumers to deal with their debt and with dealing with a Licensed Insolvency Trustee over other unregulated service providers.

Graph showing insolvency data for Canada in 2022 — Source: Government of Canada

Insolvencies across Canada increased 3.08 percent from August 2022 to September 2022. Bankruptcies increased 1.9 percent and proposals increased by 3.5 percent. Proposals also make up 77.8 percent of all insolvencies for the pervious twelve months, up from 68.3 percent in the previous twelve months.

The insolvency statistics indicate the benefits of the protections provided to consumers under the Bankruptcy and Insolvency Act over other non-legislated options. The filing of a consumer proposal or a bankruptcy comes with legal protections that other service providers cannot give. You are protected by Federal Law.

It also indicates that consumers are seeing the benefits of seeking the professional advice of a Licensed Insolvency Trustee rather than those of other non-regulated service providers.
If you would like to know exact details of how a consumer proposal or a bankruptcy would benefit you in dealing with debt, call us at (604) 605-3335 to schedule a free consultation.

Call us. It’s not too late.

OSB Issues Consumer Alert

admin · November 9, 2022 ·

If it sounds too good to be true, it probably is.

A woman holding up a clipboard with a large warning icon on the top page

The Office of the Superintendent of Bankruptcy has issued a News Release/Consumer Alert alerting those Canadian Consumers who are in financial difficulty to be aware of unregulated, unlicensed debt advisors that claim to be authorized to assist you with insolvency options.

These firms sometimes charge hundreds or even thousands of dollars for services they are not licensed to provide, or for unnecessary services offered before, during or after a consumer proposal or bankruptcy filing.

The release states that Canadian Consumers meet with a Licensed Insolvency Trustee (LIT). LITs provide independent, unbiased advice about the options to deal with debt. LITs are required to assess your financial and personal situation, and to discuss all options available for solving financial difficulties, including insolvency and non-insolvency options.

Quotes from the news release:

Those faced with desperate financial situations are susceptible to false promises of a quick solution to their debt problems. Anyone considering a consumer proposal or bankruptcy should meet with a Licensed Insolvency Trustee first. LITs are the only federally regulated professionals who can provide debt relief options such as bankruptcy and consumer proposals. LITs are bound by a Code of Ethics and required to explore all debt relief options to help debtors find the best solution for their needs.

Elisabeth Lang

Superintendent of Bankruptcy

Canadians can feel confident that when they seek advice from a Licensed Insolvency Trustee, they are dealing with someone who has demonstrated they have the knowledge, experience and skills to help them make informed choices to deal with their debt. They are the only debt-relief professionals in Canada legally required to offer a complete financial assessment, explain all the options for debt-relief and offer unbiased advice.

Jean-Daniel Breton

Chair of CAIRP

You can read the entire release here.
If you are in debt, you need to call us. It’s not too late.

A Closer Look at August 2022 Insolvency Stats

David Wood · October 4, 2022 ·

Consumer insolvencies in BC increased in August 2022 overall by 33.4 percent from August 2021. Consumer proposals increased 44.0 percent while bankruptcies decreased 0.6 percent.

Graph of number of insolvencies in British Columbia in 2022 — *Source: Government of Canada*

Consumer insolvencies in all of Canada for August increased 26.7 percent over the same period last year. BC accounted for 10.6 percent of all consumer insolvencies in Canada in August 2022.

The proportion of proposals in consumer insolvencies in BC accounted for 82.3 percent of all BC insolvencies August 2022 while they accounted for 75.9 percent for all insolvencies across Canada for the same period.

The proportion of proposals in consumer insolvencies in BC was 80.0 percent during the 12-month period ending August 2022, up from 73.2 percent during the 12-month period ending August 2021. It indicates the popularity of consumer proposals as a way for consumers to deal with their debt and with dealing with a Licensed Insolvency Trustee over other unregulated service providers.

Graph of number of insolvencies in Canada in 2022 — *Source: Government of Canada*

Insolvencies across Canada increased 13.6 percent from July 2022 to August 2022. Bankruptcies increased 9.8 percent and proposals increased by 14.8 percent. Proposals also make up 77.33 percent of all insolvencies for the pervious twelve months, up from 68.03 percent in the previous twelve months.

The insolvency statistics indicate the benefits of the protections provided to consumers under the Bankruptcy and Insolvency Act over other non-legislated options, whether that is a consumer proposal or a bankruptcy. It also indicates that consumers are seeing the benefits of seeking the professional advice of a Licensed Insolvency Trustee rather than those of other non regulated service providers.

If you would like to know exact details of how a consumer proposal or a bankruptcy would benefit you in dealing with debt, call us at (604) 605-3335 to schedule a free consultation.

Call us. It’s not too late.

CRA Ramps up Collections on CERB

David Wood · July 11, 2022 ·

Have you received a repayment letter from CRA and don’t have the funds? You’re panicking because you don’t know where the money is coming from. Don’t panic. We can help.

The government began to verify the payments it sent to almost nine million Canadians through the Canada Emergency Response Program (CERB). A lot of Canadians are being told they have to pay back some or all of the money they received as the government has determined they were ineligible for the amount received and/or because they received an advance payment that was never reconciled.

The CRA said they have started sending out Notices of Redetermination, or more correctly put, collection notices, to Canadians who turned out to be ineligible for some or all of the CERB they received.

Ignoring the CRA is never a good way at dealing with taxes, whether it be repayment of CERB or just personal income taxes. CRA can seize your bank account or garnish your wages. That could have a huge impact on your life when the money you have for rent and food is suddenly gone.

So now what? Call us. We can help you. The most important thing you can do is ask for help if you need it. Being in debt and struggling just to meet living expenses during high inflation is more common than you think. It’s not too late to seek professional help and find out what your options are.

Call us. It’s not too late!

Boale, Wood & Company Ltd.

(604) 605-3335

BC Court – Student Loans, Single Date

David Wood · October 4, 2021 ·

BC Court confirms single date approach to discharging Student Loans through a consumer proposal or bankruptcy.

A recent decision by the BC Supreme Court confirmed that BC will continue to follow the single date approach when considering whether or not a Student Loan is dischargeable through either a consumer proposal or a bankruptcy.

In the recent decision of Re: Piekut (2021 BCSC 1883) the Court declined to change the single date approach to a multiple date approach when considering if Student Loans are discharged in ether a consumer proposal or bankruptcy and continued to follow the current jurisprudence that was established in 2015 in the BC Decision of Re: Mallory (2015 BCSC 5).

Background

The current legislation provides that if a student loan is more than seven years old at the date of a bankrupt’s filing, or the filing of a Consumer Proposal, it is dischargeable as a debt under the Bankruptcy and Insolvency Act. If it isn’t greater than seven years old then the debt is not dischargeable.

It may be discharged if the student makes a “hardship” application once it is more than five years post-study but less than seven years of the filing of the bankruptcy or consumer proposal (more on that later in a subsequent paper).

We understand that Student Loans considers the End of Study date as the date when an individual ceased or ceases to be a student. This date doesn’t mean the last day you attended school. It is the date that the government considers to be the last date of the program you were last enrolled in. It also includes both full-time and part time attendance.

The applicant raised the issue of whether the BC Court should continue to use the “single date” approach as decided in Mallory or “multiple date” method of determining whether a student loan is discharged under s. 178(2) of the BIA which has been used in other jurisdictions.

Does a student who is in-and-out of school, with or without student loans for each (or any) session, reset the clock each time they enroll, or does the clock stop each time they cease study? In BC the answer is the clock resets as decided in Mallory and confirmed in Peikut. The end result is that the student loan survived the proposal and was not discharged under the BIA.

Different jurisdictions have taken a “multiple date” approach. However, in BC that has been rejected.

We understand the decision is being appealed.

If you have Student Loan debt that is unmanageable, contact us today. We offer a free no-obligation consultation where we will look at all your debts with you and help you decide if a bankruptcy or consumer proposal makes sense to deal with your student debt.

A virtual meeting is available via Zoom or Microsoft Teams. Or we can chat on the phone or by email. If you would like an in-person consultation, we can arrange that as well. We have offices in Vancouver and Surrey.

Call us. Its not too late!

(604) 605-3335