Significant decrease in the number of bankruptcies

As surprising as it may seem, personal bankruptcies were much less numerous in 2020 despite the health crisis.

The year ended with a general decrease: the fall is 41% in Quebec and 38% in Saguenay-Lac-Saint-Jean.

The COVID-19 pandemic has created quite a turnaround. While the months of January and February showed an increase in personal bankruptcies of around 10%, the trend was drastically reversed as of last April. The decrease even reached 65% in the 2^e quarter of 2020.

“We had never seen such a decrease since the superintendent began publishing these statistics 25 years ago!” exclaimed Wednesday Pierre Fortin, president of Syndic Jean Fortin and associates. “We started from a record increase … to a record decrease”, he added in an interview with TVA Nouvelles.

A few factors influence these results, including the decision of governments and financial institutions to postpone payment obligations for several months.

“Interest rates continued, but the measure was profitable. Someone who had a mortgage of $ 1,200 was given a break to pay other bills, ”said Mr. Fortin.

The PCU, at $ 2,000 per month, made it possible to cover current expenses.

“It was a great initiative,” said Mr. Fortin.

Annie Dubé has just resumed her job at the Pacini restaurant in Saguenay after long months of confinement. Like many other workers, she found that deferred payments and PCU left more money in the wallet.

“We paid our bills, we are careful with our expenses,” she said. Yes, the bank account has remained high. ”

Until the economy returns to normal, Pierre Fortin advises taking advantage of the context to learn how to reduce your debt ratio.

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