Bankruptcy Kitchener Blog

For the second straight year, the number of personal bankruptcy and consumer proposal filings in Kitchener decreased in 2006. In 2006 1,177 individuals in Kitchener and surrounding area filed personal bankruptcy, and 316 people filed a consumer proposal. That’s 1,493 people who filed, as compared to 1,529 people in 2005, a decline of 2.4%.

It appears that this decline is caused primarily by a strong labour market in Kitchener. The unemployment rate declined to 5.2%, and employment continued to increase (although not as fast as in 2005).

While a declining bankruptcy rate is good news, let’s not forget that Canadians are carrying a record level of debt. Household debt increased 9.8% in the first 10 months of 2006, and in September 2006 the ratio of debt to personal disposable income reached a record 122%. This means that for every $4 the average Canadian earns in a year, they now have $5 in debt.

If you live in Kitchener and are carrying a lot of debt, you may not be able to financially survive even a temporary job loss or reduction in your income.

If you have too much debt, give my office a call in Kitchener at 519-747-0660 or 310-PLAN, and let’s get to work on making a plan to deal with your debts.