Bromwich and Smith: Bracing for a personal bankruptcy boom amid business closures

CALGARY, AB, Aug. 6, 2020 /CNW/ - With the ever-growing list of businesses filing for bankruptcy, it's only a matter of time before the number of personal bankruptcies jump to record levels.

"We are seeing a steady increase of calls to our offices across the country from clients looking for help and we expect to see those numbers climb as relief programs end and more jobs are lost due to business closures," said Mr. Shawn Stack, Bromwich and Smith's Vice-President of Insolvency Practice.

One recent forecast predicts the corporate global insolvency rate to hit an all-time high of 35% by 2021. The ripple effect could push personal bankruptcy numbers to record numbers as well with continued job losses.

The Office of the Superintendent of Bankruptcy Canada is reporting a 4.7% jump in personal bankruptcies and consumer proposals in June, compared to the previous month.

In preparation, Bromwich and Smith is staffing up its head office in Calgary and locations in B.C., Ontario and Saskatchewan to help clients when they need it the most.

Debt Relief Specialists have begun hearing from clients that they are not going to be able to make their bill payments once the CERB, mortgage deferrals, wage subsidies and other COVID-19 relief programs end. They are also saying collection agencies and banks have resumed calling borrowers who have defaulted on their payments.

"There was a reprieve during the height of the COVID-19 lockdown, but we are hearing creditors have begun calling again, adding to the overwhelming stress related to the pandemic," said Mr. Stack.  "Relief programs are coming to an end, but they still don't have income to pay their bills."

For interviews with Mr. Stack, please call our media relations line at 403-801-0242 or email [email protected].

About Bromwich and Smith

At Bromwich+Smith, our dedicated team of Licensed Insolvency Trustees and Debt Relief Specialists are committed to rebuilding our clients' worth while helping relieve the overwhelming financial and emotional burden they are experiencing. Beyond our clients' financial wellbeing, Bromwich+Smith strives to restore the personal wellbeing and self-confidence of every client. Whether its through a consumer proposal, bankruptcy, counselling or budgeting, our clients trust us to work with them to find customized solutions to make them whole again. With offices in BC, Alberta, Saskatchewan and Ontario, Bromwich+Smith helps thousands of Canadians each year rebuild their worth.

SOURCE Bromwich and Smith