COVID: Insolvency trustees warn of post-pandemic financial stress

COVID: Insolvency trustees warn of post-pandemic financial stress

Derrick Penner Author of the article:

Publishing date: Statistics from the Superintendent of Bankruptcy show that 2,099 B.C. consumers filed for debt relief in the last three months of 2020, a 28 per cent decline from the same period of 2019 and the portion of filings for straight-up bankruptcy, 593, represented a 44 per cent drop.

Government assistance programs and bank payment deferrals have cushioned the economic blows of the pandemic for many, but once those all end in the coming months, financial stresses will return. “Creditors weren’t really coming after citizens, and of course the government supports (were) kind of staving off people taking those steps (of filing for bankruptcy),” said Shawn Stack, vice-president of the insolvency trustee Bromwich+Smith.

Consumer bankruptcies and debt-settlements in B.C. have plummeted during COVID-19, which sounds like a good thing, but insolvency trustees worry that troubles lurk beneath the surface. Apr 18, 2021  •  52 minutes ago  •  3 minute read  •  Join the conversation Linda Paul, senior vice-president and licensed insolvency trustee for the accounting and consulting firm MNP. PNG Article content

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It’s a human response to focus on the crisis at hand and ignore other problems, Stack said, and it’s likely that debt problems have taken a back seat to COVID-19. “But as that stuff ends, it’s very likely that this is going to be kind of coming home to roost,” said the Calgary-based Stack. Article content

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