Canadians going bankrupt at alarming rate: report

 

Canada's cost-of-living crisis is reportedly pushing Canadians further into debt. This pushed insolvency rates to their highest levels in previous years. This is stated in the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) report. Consumer insolvencies rose 11.3 percent in May from last year, according to the Office of the Superintendent of Bankruptcy (OSB). The number of personal filings stood at 12,195. This is the highest monthly rate seen since October 2019, before the pandemic.

In the 12-month period ending May 2024, there was a 17.9 percent increase in consumer insolvency filings compared to the same period last year. Saskatchewan was the province with the highest insolvency rate in May 2024. 18.8 percent increase to 347 daily filings. Ontario and Quebec are in second place with rate increases of 16 per cent.

CAIRP says 530 Canadian business insolvencies were recorded in May. There was an increase of 41.7 percent over the same time last year.