Consumer Insolvency Statistics in Nova Scotia 2019
In 2019, there were 137,178 insolvencies filed by consumers in Canada. This was up 9.5% from 125,266 in 2018.
In Nova Scotia there were 6040 consumer insolvency filings. The total filings were up 8% from 2018 to 2019.Consumer Insolvencies in Nova Scotia 2018 vs 2019Filings 2018Filings in2019JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember350400450500550600650
| Month | Filings 2018 | Filings in 2019 |
|---|---|---|
| January | 373 | 466 |
| February | 464 | 387 |
| March | 462 | 530 |
| April | 492 | 501 |
| May | 536 | 548 |
| June | 520 | 555 |
| July | 446 | 488 |
| August | 479 | 527 |
| September | 438 | 488 |
| October | 514 | 603 |
| November | 485 | 472 |
| December | 386 | 475 |
January373466February464387March462530April492501May536548June520555July446488August479527September438488October514603November485472December386475
Bankruptcy vs Proposals
There has been a shift in the type of insolvency proceedings being filed by debtors in Nova Scotia and throughout Canada. Increasingly debtors are filing proposals instead of bankruptcy. In 2019 there were 2855 proposals filed in Nova Scotia which represents 47% of all insolvency filings. In 2018 proposals only represented 38% of insolvency proceedings in Nova Scotia. This shift in filings has occurred across Canada. In 2019, consumer proposals accounting for 59% of insolvency proceeding whereas in 2018 they made up 55% of proceedings.
Nova Scotia’s increase in consumer proposals may be happening for a variety of reasons. Consumers with high debt levels and high income and significant assets utilize the consumer proposal process as a way of repaying their creditors what they can while retaining their assets. We also see debtors who have been through bankruptcy in the past filed a consumer proposal as an alternative to a second bankruptcy. Filing a consumer proposal instead of a second bankruptcy reduces the length of time the insolvency proceeding is reflected on the credit report. We also see many Nova Scotian debtors who simply wish to pay back as much as they can to the creditors and opt to file to a consumer proposal rather than a bankruptcy for their own personal reasons.
In the Annapolis Valley (including Windsor, Kentville, New Minas, Berwick, Kingston and surrounding areas) there were 464 bankruptcies filed in 2019 and 349 consumer proposals filed. In comparison – 2018 saw 530 bankruptcies and 201 consumers proposals filed in the Annapolis Valley. This means there was a decrease of 12.5% in bankruptcy filings and an increase of 73.6% in consumer proposals.
In the Halifax area (including Bedford, Dartmouth, Sackville and surrounding areas) there were 1107 bankruptcies filed in 2019 and 1018 consumer proposals. In comparison – 2018 saw 1212 bankruptcies and 849 consumers proposals filed in Halifax area. The change was not as dramatic as in the Annapolis Valley, but there was a decrease of 8.7% in bankruptcy filings and an increase of 19.9% in consumer proposals.2019 Consumer Proposals vs Bankruptcy in Nova ScotiaBankruptciesConsumerProposalsJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember150200250300350
| Month | Bankruptcies | Consumer Proposals |
|---|---|---|
| January | 263 | 203 |
| February | 214 | 173 |
| March | 299 | 231 |
| April | 290 | 211 |
| May | 294 | 254 |
| June | 304 | 251 |
| July | 249 | 239 |
| August | 295 | 232 |
| September | 239 | 249 |
| October | 298 | 305 |
| November | 226 | 246 |
| December | 222 | 253 |
All indications are that 2020 will see a continued increase in the total number of consumer insolvency. We will publish regular updates on our blog as the numbers are issued by the Office of the Superintendent of Bankruptcy.