Bankruptcy Numbers November 2022

By Regan Tate

Inflation and rising interest rates result in high rate of insolvencies across Canada

Jan 7, 2023 | 8:45 AM

Medicine Hat, AB–An agency supporting Canadians with debt relief options says November saw the highest rate of insolvencies since March 2020.

Across Canada, there were were 9,785 insolvency filings, up 17.5 percent from November 2021. The numbers were made public by the Office of the Superintendent of Bankruptcy.

Michelle Statz with Bromwich+Smith says “this is the first time we have seen numbers close to pre-pandemic levels. With the end of government benefits such as CERB and the onset of record inflation, it was just a matter of time until the other shoe would drop, and people would start to feel the full effects.”

The agency says some of the likely causes were inflationary pressures and a ballooning cost of living. Many Canadians faced steep increases in their mortgage payments as interest rates rose impacting with variable rates and renegotiated mortgage.

Regional insolvencies

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Ontario

With 3,475 insolvency filings in the month, Ontario saw its highest volume of filings since March 2020. That number was 24 per cent higher than in November 2021.

Alberta

With 1,402 insolvency filings in the month, Alberta saw its highest volume of filings since March 2020. That number was 8.5 per cent higher than in November 2021.

British Columbia

With 974 insolvency filings in the month, B.C. saw its highest volume of filings since October 2019. That number was 32.5 per cent higher than in November 2021.

The pandemic impact seems to have been slightly earlier in B.C., and a return to pre pandemic levels started in August

Saskatchewan

The month of March saw Saskatchewan’s highest level of insolvencies since pre-pandemic levels of February 2020 (313). The numbers remained high throughout spring and summer. March numbers were 15 per cent higher than in November 2021.

Remaining regional insolvencies for November 2022

· Nova Scotia – 330

· New Brunswick – 274

· Manitoba – 247

· Newfoundland and Labrador – 142

· P.E.I. – 33