Insolvencies Jumped 11.5% Annually in June, Canada’s Bankruptcy Monitor Shows
Consumer proposals made up about 76% of filings as high household debt and rising borrowing costs strained household finances, analysts said.
- Canadian insolvencies rose 9.4% in June on a seasonally adjusted basis, with total filings 11.5% higher than a year earlier, according to Servus Credit Union economists Charles St-Arnaud and Oriane Kacoutie.
- Stagnating purchasing power and high household debt have pressured Canadian finances in recent years, Charles St-Arnaud said, limiting consumers' ability to use home equity to pay off unsecured debts.
- Consumer proposals, which involve renegotiating repayment terms with creditors, accounted for roughly 76% of all insolvencies, Scott Terrio of Hoyes, Michalos & Associates said, allowing creditors to recover more cash eventually.
- Homeowner insolvencies have ticked up to 8% of filings compared with 5% in 2024, Scott Terrio noted, as falling home values left some owners unable to refinance their mortgages.
- Regional data shows the largest insolvency gains in Prince Edward Island at 50%, followed by Saskatchewan at 28.1%, though rates appear to be stabilizing near 2009 levels according to Servus Credit Union.
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Insolvencies in Canada Jumped More Than 11 Percent in June: Government Data
Insolvencies in Canada increased by more than 11 percent in June, data show, with one expert suggesting that higher household debt, lower purchasing power, and higher interest rates are pressuring personal finances. The Office of the Superintendent of Bankruptcy released new figures, showing that 13,254 individuals and companies filed insolvencies in June. This was a 5.7 percent increase from 12,536 insolvencies in May and a 11.5 percent increas…
Insolvencies on the rise in Canada: report
Management of Companies and Enterprises; Accommodation and Food Services; and Mining, Quarrying, and Oil and Gas Extraction registered the largest increases in the number of insolvencies. The post Insolvencies on the rise in Canada: report appeared first on Retail Insider.
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