Bankruptcy in Manitoba: Rates are climbing in the province

As the prices of everything continue to rise across the country, more Manitobans are filing for bankruptcy according to new data from the federal government.

The second quarter 2022 report on Canadian insolvency statistics shows that Winnipeggers over the past three months have filed for bankruptcy by almost 47% compared to the previous quarter.

It is even higher for the province as a whole since Manitoba is at 50%.

In terms of year-over-year numbers, Winnipeg is up 7.2% with 119 filings in 2022, compared to 111 in 2021. In Manitoba, filings are actually down 4.4% since 2021 , going from 204 to 195.

Winnipeg and Manitoba’s numbers are well above the national average of only a 9% increase from last quarter and last year fell 11.1%.

Brad Milne, a Brandon-based licensed insolvency trustee, said these numbers show Manitoba is returning to pre-pandemic levels.

“When you look from 2019 to 2020, in Manitoba, the number of filings actually went down about 20%, and then the next year they went down another 1%,” Milne said. “Canada saw a larger decline during this filing period, about 37 percent.”

He said the numbers went down because the government increased emergency benefits, collection agencies weren’t calling people and Canadians weren’t spending money because there was nothing to spend. money.

Debt proposals also surged in the province and in Winnipeg.

The government says a proposal is “an offer to creditors to settle debts on terms other than the existing terms. A proposal is a formal agreement under the Bankruptcy and Insolvency Act”.

In Manitoba, applications have increased since the last quarter by 15.2% and 17.3% compared to the same period last year.

These numbers are even higher in Winnipeg; 23.2% compared to last quarter and 24.6% since the second quarter of 2021.

The number of proposals is a little closer for Canada as a whole, up 9.3% from last quarter and 20.6% from last year.

“Now that we’re coming out of this in 2022, the benefits are pretty much over, people are going back to their normal activities, the collection agencies are starting to do their jobs again, and so we’re almost, in my opinion, back to our normal ways. “

Milne said it’s unusual to see such a big change in Manitoba from the national average.

He recommends people review their finances monthly and look for areas where they can cut costs.

DISTRIBUTION OF EACH REGION IN MANITOBA – SOUTHEAST

In the southeastern part of the province, the number of bankruptcies has increased by 62.5% since the last quarter, from 8 filings to 13, but since last year it has decreased by 45.8%.

For proposals, they have increased by 10.7% since the first quarter and by 19.2% since 2021.

CENTRAL SOUTH

The bankruptcy percentage looks worse than the actual filings. The area is growing 150% quarter over quarter, but that goes from two filings in the first quarter to five in the second quarter.

The year-over-year number decreased by only one filing.

Proposals have fallen by 36.8%, from 19 to 12 per quarter and by 45.5% since 2021, when 22 proposals were submitted.

SOUTH WEST

Bankruptcies rose 56.3% in the South West region from 16 last quarter to 25 this quarter, but year-on-year they are down at just 25%.

As for proposals, there were 41 in the first quarter of 2022, compared to 54 in the second quarter, an increase of 31.7%. Last year, 47 proposals were submitted, an increase of 14.9%.

CENTER NORTH

The North-Central region was stable quarter over quarter in bankruptcies with no change in the number of filings – three per quarter.

There was also a 62.5% decrease from 2021, when there were eight filings.

Proposals also fell per quarter from 13 to 12, but are up 50% from 2021, when there were eight.

INTERLACED

The Interlake saw a jump in bankruptcies in the second quarter from four to nine, but still down from a year ago to 13 filings.

However, proposals increased by 34.8% – 23 in the first quarter and 31 in the second quarter.

They are up 63.2% year-over-year from 19 in 2021.

PARKS

Parklands’ numbers were marginal, with two bankruptcy filings in the last quarter and five in the second quarter. However, this is still a decrease from last year when there were eight.

As for the proposals, they are slightly up in the second quarter, going from 10 to 15 and there were 14 in 2021.

NORTH

In the north, bankruptcies fell from six to three and only four declarations were made in 2021.

Proposals also fell this quarter, from 15 to nine and there were 18 in 2021.

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