Positive Trends in Alberta Insolvencies
According to a report released in late March 2011 by the Office of the Superintendant of Bankruptcy Canada the number of corporate and consumer insolvencies (bankruptcies and proposals) in Alberta plunged in December to its lowest level since before the recession! 790 businesses and consumers filed for bankruptcy or a formal proposal under the Bankruptcy and Insolvency Act in December, a decrease of 45% from its peak of 1443 in September 2009.
In spite of monthly statistics for insolvency volumes tending to vary widely from month to month quarterly numbers further confirm the validity of the continuing improvement in the financial health of Alberta business and consumers.
Although a favorable trend may be developing this by no means should be taken as a signal for credit grantors to reduce their current levels of vigilance with customers. Continue to maintain tight control on your aging receivables, regardless of where we find ourselves in the macro-economic cycle.
Monthly Alberta Insolvencies (last 36 Months)
Quarterly Alberta Insolvencies (Last 12 Quarters)
From American writer Logan Pearsall Smith (1865-1946):
"Solvency is entirely a matter of temperament and not of income."