More and more Canadians are filing for insolvency

by Ephraim Vecina on 10 Jan 2019

An increasing proportion of Canadians are filing for insolvency due to the difficulty of paying off their accountabilities, according to the latest report by the Office of the Superintendent of Bankruptcy.

Year-over-year, filings in the October-November period spiked up in every province except Prince Edward Island, which exhibited flat growth.

Insolvencies increased the most in Alberta, registering an annual growth of 16% amid the province’s slow recovery from the oil price crashes of recent years.

And while Ontario’s filings only increased by 1% in 2018, this was after 8 straight years of decline. Hoyes, Michalos & Associates Inc. warned that the province’s insolvency rate will increase by “a minimum” of 2% to 5% this year, and may even go up by as much as 8% “if interest rates continue to rise and housing prices fall.”

Read more: Canadians view murkier fiscal, economic prospects in 2019

Overall, the number of Canadian filings rose by 5.1% year-over-year in November, up to 11,320. The OSB noted that October and November accounted for 22,961 consumer insolvency filings, which was the highest volume for those months since at least 2011.

Canadian Association of Insolvency and Restructuring Professionals board member David Lewis blamed increased borrowing costs, the recent interest rate hikes, and economic uncertainty as the main drivers of the trend.

Post a Comment

Most Trending News

The best place to buy a rental property in Canada: 2021
News

You want the biggest bang for your buck so here are the best places in Canada to buy a rental property, and the best types of properties (including vacation homes!).

Read More
Strategies to Predictably, Reliably Grow Your Real Estate Business
News

This 7-day free masters summit will provide you with all the tips and tricks you need to get started in real estate investing, how to expand your real estate portfolio, and much more.

Read More
June virtual conference promises to turn agents into millionaires
News

“The easiest way to prove to people you can help them is to just start helping them, no strings attached,” said Craig Proctor, the master realtor who revolutionized the team concept.

Read More