The main causes of bankruptcy in Alberta

Some Albertans may find themselves in debt and wonder how they ended up in the situation they are in.  A recent article published by Equifax, on average Albertans are carrying consumer debt of $24,987, the highest consumer debt per person in Canada. (see  Credit Card Spending Ramps Up as Inflation Soars ( There are many circumstances that can lead to being in debt.  Some causes are outside of your control and some are within your control. The most common external factors leading to being in debt are:
  • Suffering a serious illness, disability or mental illness

  • Death of a spouse or family member

  • Loss or reduction in income

  • Separation and/or divorce

  • Changes in family dynamics, such as an addition of a child or taking on the care of elderly parents

  • Business failure

  • Addictions, such as drugs, alcohol or gambling

Circumstances for which you have a degree of control over at typically the result of personal behaviors and negative patterns of handling your finances that have developed over time.  Examples of such are:

  • Overuse or misuse of credit cards, lines of credit, overdrafts and loans

  • Overspending and impulse spending

  • Not making necessary payments as they become due

  • Failing to create and stick to a budget.

Often the end cause leading to the filing of a bankruptcy or consumer proposal is a result of a combination of circumstances and behaviors.  We recommend looking back on your individual circumstances and try to identify the root causes of your financial problems and then take the necessary steps to avoid making them in the future.

If you are an Albertan struggling with debt, call us at 403-836-6690 for a free, non-judgmental consultation on your options for dealing with your debt or visit our website at for additional information.