Archive for February, 2006

I am often asked if problem gambling increases the personal bankruptcy rate in Brantford, Ontario due to the Brantford Casino.

Our firm, Hoyes Michalos & Associates Inc., did a study of all of the people who have filed personal bankruptcy or a consumer proposal with us over the last few years to determine if the casino has had an impact on the bankruptcy rate in Brantford.

Less than 1% of our debtors listed gambling as one of the causes of their financial difficulties. This is a lower rate than we observed in Kitchener (1.44%), Toronto (2.31%) or Windsor (2.44%) where we also have offices.

Based on my discussions with the people in Brantford who use our services, there are not a significant number of Brantford residents that go to the casino on a regular basis. It appears that most of the players at the casino are coming from other cities.

We also analyzed the total number of bankruptcies in Brantford since 1991. Despite a steady decline in unemployment in Brantford since the opening of the Brantford casino in November, 1999 (from 7.3% in 1999 to 6.6% in 2005), Brantford’s personal bankruptcy rate per 1,000 working age adults continues to increase (from 5.07 in 1999 to 6.06 in 2005). It is therefore possible that casino has had a small impact on the personal bankruptcy rate in Brantford.

Regardless of what the statistics may say, for some gambling is a cause of financial problems, and it can impact on all areas of life. If you, or someone you know, has a gambling problem, it probably will not go away on its own. You can get help by contacting the Ontario Problem Gambling Helpline at 1-888-230-3505, or by visiting resources such as the Responsible Gambling Council and St. Leonard’s Community Services in Brantford.

If you have more debts than you can handle as a result of gambling, or any other cause, please contact us for a free consultation to review your options.

How many people declared personal bankruptcy or filed a consumer proposal in Brantford, Ontario in 2005?

In statistics just released by the Office of the Superintendent of Bankruptcy, in the city of Brantford, Ontario for the year 2005, a total of 470 individuals declared themselves to be insolvent, with 360 individuals filing a personal bankruptcy in Brantford and 110 debtors filed a consumer proposal.

Personal bankruptcy and proposal filings fell by 2.3% in 2005 in Brantford, as compared to an increase of 3.1% in Ontario.

This favourable performance in Brantford was due primarily to strong employment growth of 5.5% in 2005, as compared to a decline of 3.3% in 2004. The unemployment rate in Brantford fell from 7.1% in 2004 to 6.6% in 2005. Housing starts increased by 10.8 in 2005 in Brantford, which obviously contributed to the improved employment picture.

I was the administrator on almost half of all consumer proposals filed in Brantford, Ontario, in 2005, making Hoyes Michalos & Associates Inc. the most active consumer proposal filer in Brantford, Ontario in 2005.

It takes experience to understand what consumer proposal terms are likely to be accepted by your creditors, so I encourage you to put our experience to work for you by e-mailing us a question or giving our Brantford office a call at 622-3773 or 310-PLAN to get us started working with you.