November saw highest number of Canadian insolvencies since March 2020; Alta. and Sask. up

Licensed Insolvency Trustees, Bromwich+Smith, said November 2022 saw the highest number of Canadian insolvencies since March 2020 (the month of the widespread COVID-19 lockdowns, and the announcement of the initial CERB aid package). The numbers were jreleased by the Office of the Superintendent of Bankruptcy. Bromwich+Smith, which supports Canadians with debt relief options such as consumer proposals and bankruptcy, said the numbers paint a picture of many people feeling increasingly vulnerable to ongoing economic shocks.

“This is the first time we have seen numbers close to pre-pandemic levels,” said Michelle Statz, CIRP, Licensed Insolvency Trustee at Bromwich + Smith.

“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.” Nationally, there were 9,784 insolvency filings in November. This was the highest volume of filings in 32 months. The number was 17.5 per cent higher than in November 2021.

The surge began in May of this year. Some of the likely causes were inflationary pressures, and a ballooning cost of living. Rising interest rates saw an upsurge in the cost of variable rate and renegotiated mortgages and a reduction in the demand for homes. Additionally, there was a need to repay government supports as creditors came calling.

Regional insolvencies

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.

Sask.: 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.