Canada's insolvency rate is soaring

 

 

Canada's high cost of living and household expenses continue to push people into debt, the country's insolvency rate has reportedly soared. According to the Canadian Association of Insolvency and Restructuring Professionals (CAIRP), 35,082 people filed for consumer insolvency in Canada in the second quarter of this year. The Office of the Superintendent of Bankruptcy (OSB) recorded a 12.4 percent increase over the same time last year.

Consumer bankruptcies in Canada hit a four-year high, CAIRP found. The number of filings exceeded 35,000 in a quarter in late 2019 before the Covid pandemic. In the second quarter of 2024, an average of 386 people filed for bankruptcy each day, according to the report.

Ontario reported the highest rate with 13,309 filings in the second quarter of 2024 (up 18.3 percent). Quebec (8,594) and Alberta (4,900 filings) are the closest provinces. Meanwhile, business insolvencies fell by 23.1 percent compared to the first quarter of this year.