TORONTO, ONTARIO, MAY 12, 2020 - Each year in Canada, an average of 120,000 - 125,000 people file for bankruptcy or insolvency, but new statistics show that the economic impact of COVID-19 could yield up to ten times the bankruptcy cases seen yearly in Canada.
A recently poll indicated that 9% of participants felt they were somewhat close to declaring bankruptcy, while 4% believed that they could be filing for bankruptcy within the next 90 days. According to these statistics, that means that 1.3+ million Canadians could very soon be facing bankruptcy.
With most of Canada’s government support programs set to run out of funding this summer , and most Canadians not having a sufficient savings cushion, many Canadians are scrambling to find viable debt relief options.
The team at Bankruptcy Canada consists of government-authorized Licensed Insolvency Trustees (LITs) who provide bankruptcy assistance for Canadians every day. They are working now to make more Canadians aware of their financial options in the face of the COVID-19 pandemic.
For instance, Bankruptcy Canada works to help Canadians understand The Bankruptcy and Insolvency Act. This act offers debt relief for Canadian debtors. For instance, one strategy, a Consumer Proposal, lets Canadians with steady income negotiate terms with their creditors and eliminate interest with a 0% rate.
A Consumer Proposal is a relatively straightforward way for Canadians to take control of their financial situations in light of bankruptcy.
“With a Consumer Proposal, at zero percent interest, you can pay your debt in full, paying only $584/month, or $116/month [with an interest rate], and have it paid off in a reasonable timeframe of five years,” said the team at Bankruptcy Canada.
In a recent blog post, Bankruptcy Canada offered details on the impact of COVID-19 on bankruptcy in Canada, as well as the options available to consumers.
Consumer Proposals must be administered exclusively by Licensed Insolvency Trustees.
Bankruptcy Canada helps clients navigate through Consumer Proposals, ensuring the necessary process is taken to provide the most assistance possible in the situation. Bankruptcy Canada’s LITs offer free consultations. For those who are potentially facing bankruptcy, whether as a result of the COVID-19 pandemic’s economic impact or any other factor, the team at Bankruptcy Canada encourages Canadians to reach out. More information can be found at https://www.bankruptcy-canada.ca.
About Bankruptcy Canada
Bankruptcy Canada’s team of government-authorized Licensed Insolvency Trustees offer professional assistance in navigating clients through bankruptcy.