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More on the use of bankruptcy as an individual debt-collection device

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Iain Ramsay

http://www.kent.ac.uk/law/people/academic/Ramsay,_Iain.html

In a recent post I criticised the use of bankruptcy in England as an individual debt collection mechanism. I mentioned that creditors’ petitions were much rarer in North America. The  Canadian Office of Superintendent of Bankruptcy kindly provided me with the following data indicating the number of  bankruptcy orders made on creditors’ petitions from 2004-2013.  This indicates how rare are such orders compared with debtor assignments (118,678 consumer insolvencies were recorded in 2013). Moreover  a significant percentage of the bankruptcy orders below are made after a failed attempt at a proposal (similar to IVA).

Total Bankruptcy Orders made on Creditor’s petition-Canada 2004-2013

Year                           Total            Consumer  Business

2004 90 70 20
2005 91 67 24
2006 77 53 24
2007 79 66 13
2008 86 61 25
2009 76 57 19
2010 62 54 8
2011 59 53 6
2012 46 40 6
2013 43 40 3
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