Bypassing bankruptcy

Keep your debt payments up and your budget current.

That's the advice local bankruptcy trustees are issuing to consumers in light of economic conditions affecting other parts of Canada, in the hopes Saskatchewan's residents will bypass the luck of other Canadians.

In a survey released by Industry Canada organization Office of the Superintendent of Bankruptcy, More than 50 per cent consumer bankruptcies were filed in December 2008 than in 2007.

For Saskatchewan, the report shows consumers in the province filed almost 29 per cent more bankruptcies in 2007. On the good side, the number of bankruptcies filed decreased from November to December 2008, from 114 to 107.

According to Deloitte bankruptcy trustee Signe Ferris, who has worked in the industry for more than 30 years, there hasn't been a noticeable increase in her client numbers over the last few months.

"Last year there was a decrease and this year is holding roughly the same," she said. "There's no significant change."

For Saskatoon-based bankruptcy trustee Naida Kornutna, the growth in consumer debt coupled with banks who are tightening their lending practices are leading consumers into a cash-crunched corner.

"We're already starting to see some layoffs, not a lot, but some," she said. "We're going to see an increase (of bankruptcies), but not as much as other places."

Korutna said she's noticed a decrease in the amount of bankruptcy files coming through her office, but believes that will change over the coming year as the recession starts to impact Saskatchewan more.

While Ferris and Kornuta can see bankruptcy files growing over the next year, both say there are ways for consumers to avoid going through the trauma of declaring bankruptcy.

"A lot of the problems are people aren't really budgeting, they don't know what they're spending," said Ferris. "They just know it's gone."

Kornutna advises consumers to pay down their debts as soon as possible.

"In Saskatchewan, people still have the opportunity to do that," she said. "If you lose your job, you're eventually going to run out of money."

kjarvis@paherald.sk.ca