Vancouver bankruptcies are soaring

Andy Clark/Reuters

Vancouver residents are filing for bankruptcies much faster than last year.

Analysis of filings from the Office of the Superintendent of Bankruptcies (OSB) shows that there is an uptick of insolvencies in June, especially in the suburbs.

Despite the rapid climb when compared to last year, the overall numbers are fairly low compared to the cities like Toronto.

Bankruptcies Are Up 17.94%

Bankruptcies, which are borrowers seeking rapid financial relief, are up across the Greater Vancouver Region (GVR).

The OSB received 184 bankruptcy filings in June 2017, a 17.94% increase from the same month last last year. Total assets in these filings add up to $5.09 million, vs $17.32 million in outstanding liabilities.

Despite the large increase, this is still a very low number relative to cities like Toronto. On a per capita basis, this number for June was ~41% lower than Toronto.

OSB, Better Dwelling

Consumer Proposals Are Down 5.7%

Consumer proposals, which are a formal filing seeking to settle with creditors, is down across the GVR. The OSB received 278 proposals in June 2017, a 5.7% decline from the same month last year. Total assets in these filings add up to $11.92 million, compared to $23.41 million in outstanding liabilities.

OSB, Better Dwelling

Total Insolvencies Are Up 2.43%

Combining the bankruptcies and consumer proposals, we get the total number of insolvencies in the region. Total insolvencies are up to 462, a 2.43% increase from the same month last year. Total assets in these filings add up to $17.02 million, with $40.7 million in outstanding liabilities.

Bankruptcies are climbing at a very quick rate in Vancouver, but they still remain at a surprisingly low level. Despite the city being one of the most expensive cities in the world, residents are still mostly finding ways to pay their bills on time. A record number of Canadians are borrowing against climbing real estate values, with debt experts seeing them use the borrowed funds to cover existing bills.

Whether this is happening in Vancouver is unclear, but homeowners would have a ton of room to refinance with the massive windfall they’ve had over the past couple of years.

 

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