Consumer insolvencies drop in Alberta

For the first time in more than 12 months, Alberta has a seen a decrease in insolvencies.

Consumer bankruptcies were down almost 12 per cent from February 2016 to February 2017, but consumer proposals were up 8.6 per cent over the same time.

Grant Thornton Licensed Insolvency Trustee Angela Lock said proposals are likely up because the terms are more favourable for consumers.

Lock said there are two other potential reasons there have been fewer bankruptcies, starting with more people getting back to work.

“Our economy’s getting a little bit better, I think there are more jobs, especially in Calgary, being posted so people are becoming employed and thinking, ‘Hey, maybe I can pay off this debt,’ and getting back to work,” she said.

On the flip side, some people may be judgement proof. They have no job and no real assets to speak of so there’s nothing for creditors to collect on.

On the whole, there is some good news in these latest numbers but unfortunately Lock believes it’s too early to say if the positive trend will continue.

Bankruptcy is a big decision and Lock said if people can see trouble coming, the best thing to do is get some advice because things usually aren’t as bad as they seem.

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