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