While there has been a lot of talk in the news about big corporations going bankrupt, the number of consumer bankruptcy filings have been alarmingly higher than last year month after month. The most recent data in for the month of May, shows 9,900 bankruptcies, a 34.4% increase over May 2008.
The biggest increase amongst the provinces has been in Alberta, at a 86.2% increase over last year. This is likely another sign of the cooling job market in Alberta and the consequences of buying more house than some could afford during the housing boom.
Ontario is another province with cause for concern. While it’s 38.9% increase may not be the highest percentage, their 4,067 bankruptcies filed in May, which is a 1,138 increase over last year is a staggering number of actual people in one province that became a victim to their debt load.
While a monthly view of bankruptcy filings may not be the most stable gauge of how consumers are coping with their debts, I’m afraid the results may not improve for awhile.
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Tom Drake is the owner and head writer of Canadian Finance Blog.
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