Canadian bank notes are seen in Ottawa on Wednesday, September 6, 2017. The Office of the Superintendent of Bankruptcy says the total of number of insolvency filings grew by 9.3 per cent to 140,858 last year with consumers leading the way and business filings rising for the first time since 2001. THE CANADIAN PRESS/Adrian Wyld

Canadian consumer, business insolvency filings grew by 9% in 2019: report

More than 97 per cent of insolvency filings were by consumers

The total of number of insolvency filings grew by 9.3 per cent to 140,858 last year with consumers leading the way and business filings rising for the first time since 2001, says statistics released Monday by the Office of the Superintendent of Bankruptcy.

More than 97 per cent of insolvency filings were by consumers. Despite solid jobs numbers, consumer filings rose 9.5 per cent to reach the second highest level on record after 2009 at the end of the Great Recession.

“The sheer number of Canadians struggling with their finances is alarming but the growth in consumer insolvencies and the accelerating insolvency rate is a symptom of a bigger problem: many who have amassed unmanageable debts have no path out,” stated Andre Bolduc, board member of the Canadian Association of Insolvency and Restructuring Professionals (CAIRP).

Ontario had the most insolvency filings at 45,754, which grew by 15 per cent from the prior year. Newfoundland and Labrador’s total filings grew 15.4 per cent, Alberta by 14.5 per cent and British Columbia 10.4 per cent.

The overall increase in insolvencies came as the total number of personal and business cases in the fourth quarter of 2019 climbed 9.8 per cent from the same period a year earlier.

The number of business insolvency filings in the fourth quarter were down 4.1 per cent compared with the fourth quarter of 2018, but up 9.7 per cent compared with the third quarter of 2019. Filings grew 2.8 per cent for the year.

The mining, oil and gas sector lead the way with a 75 per cent increase in the number of insolvency filings in 2019 over 2018. Among business filings, Manitoba was the hardest hit with filings rising by more than 39 per cent, followed by the Atlantic provinces at 38 per cent.

Consumer insolvencies grew partly because interest rates increased between 2016 to 2018, with a two to three-year lag, said Bolduc.

The household debt-to-income ratio increased to 175.86 in the third quarter, but remains below the 2018 record high of 177.82.

“If consumers continue to moderate their spending habits, this should help dampen the rate of increase in consumer insolvency filings,” he said.

But consumer insolvency filings will continue to grow this year as many Canadians have amassed unmanageable debt loads, said CAIRP.

“The indebtedness across Canadian households is likely to way on credit trends as we move forward,” added Craig Fehr, Canadian markets strategist, Edward Jones

READ MORE: Bankruptcies down in British Columbia in 2018 compared to 2017

The Canadian Press


Like us on Facebook and follow us on Twitter.

Bankruptcies

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Know a candidate for Trail-Warfield Citizen of the Year?

Nomination period for the annual award is open until April 9

Grand Forks company donates to emergency department campaign

Construction now underway at Kootenay Boundary Regional Hospital

Casting on the Columbia

West Kootenay Fishing Report is in today’s Trail Times

Air quality advisory in effect for West Kootenay

The special statement was issued Wednesday afternoon

RDKB submits second request for treatment plant funding

Cost for sewer treatment plant modernization rises to $63M

Blair says RCMP have met Wet’suwet’en conditions, so barricades should come down

The Wet’suwet’en’s hereditary chiefs oppose the Coastal GasLink project

Federal minister pledges to meet Wet’suwet’en chiefs in B.C. over natural gas pipeline

The Wet’suwet’en hereditary chiefs say they are visiting Mohawk territory

2010 leader John Furlong urges Vancouver to bid for 2030 Winter Games

VANOC said the 2010 games broke even financially

Pipeline dispute: Tories put no-confidence motion on House of Commons agenda

Conservatives say they have no confidence in the Trudeau government to end the rail blockades

Canadians aboard coronavirus-ridden cruise ship to return home tonight

Among the infected are 47 Canadians who will have to remain in Japan for treatment

Galchenyuk nets shootout winner as Wild edge Canucks 4-3

Vancouver tied with Calgary for second spot in NHL’s Pacific Division

B.C.’s soda drink tax will help kids lose weight, improve health, says doctor

Dr. Tom Warshawski says studies show sugary drinks contribute to obesity

A&W employees in Ladysmith get all-inclusive vacation for 10 years of service

Kelly Frenchy, Katherine Aleck, and Muriel Jack are headed on all-expenses-paid vacations

Most Read