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

Saanich Police respond to petition for new police agency on Lindsay Buziak murder case

Petition asks Public Safety Minister to to help find justice for slain realtor

Greater Victoria has Canada’s sixth-highest ‘moving penalty’

Disparity between vacant/occupied units incentivizes renovictions and reduces mobility, researcher says

Oak Bay council looks to whittle down tax increase from 8.05 per cent

Draft financial plan continues hyper-focus on replacing aging infrastructure

Teams finalized in last push before Pan Am Cross Country Championships

The competition is taking place at Bear Mountain Resort in Langford on Feb. 29

Greater Victoria School District seeks public input on inclusivity

An online survey is available until March 3

Fashion Fridays: The 8 best quality online stores! Shop the ultimate sales

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

POLL: Do you support the proposed changes for ICBC?

Tuesday’s provincial budget predicted a shift from shortfall to surplus in wake… Continue reading

Greater Victoria Crime Stoppers wanted list for the week of Feb. 18

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

VIDEO: 2020 BC Winter Games kick off in Fort St. John

More than 1,000 of B.C.’s best athletes will be competing over the next three days

Meet the Wet’suwet’en who want the Coastal GasLink pipeline

Supporters of the pipeline are upset only one side is being heard nationwide

Shopping cart collector at B.C. Costco awarded $583,000 after getting pinned by car

Kurtis Ryan Burdeniuk, 22, was retrieving carts when a driver backed into him in the parking lot

‘Usain Bolt he was not’: B.C. gang police seize drugs, cash after foot chase

‘The man took off running when he saw our officers approaching,’ CFSEU BC says

Canadians released from coronavirus-ridden cruise ship in Japan fly home

Those who were cleared to travel are to be screened again at Canadian Forces Base Trenton

Health officials confirm sixth COVID-19 case in B.C.

Woman remains in isolation as Fraser Health officials investigate

Most Read