According to the latest release from the Office of the Superintendent of Bankruptcies (OSB) personal bankruptcies in Alberta increased 20% in February versus the previous month and were 10% higher versus February 2014. Nationally, consumer bankruptcies were up by 10% month over month.
Unfortunately for Alberta, given the current economic backdrop, we are most likely at an inflection point, the end of the old trend and the beginning of a new trend for the number of Albertans now beginning to experience trouble in paying their debt obligations.
Although many economic soothsayers may point to the fact that we are far below the bankruptcy numbers seen during the last recession, regular readers of our column should easily come to realize we are most likely only in the early innings of a new economic cycle.
Anticipate the most savvy and prudent organizations out there granting credit to tighten their terms and credit granting standards accordingly.
Considering the above we suspect that as a collection agency operating in Edmonton, Calgary and the GTA we will continue to have our work cut out for us with already highly leveraged businesses and consumers feeling some pain.