Consumer insolvencies accounted for much of the increase, according to the Office of the Superintendent of Bankruptcy (OSB)
The total number of insolvencies in Canada saw a noticeable upswing in November, surging by 5.1% compared to the month prior, according to the Office of the Superintendent of Bankruptcy (OSB).
This gain included a 7.1% rise in bankruptcies and a 4.5% increase in proposals. On a year-over-year basis, the total number of insolvencies spiked by 24.4%, mainly spurred by a similar 24% increase in consumer insolvencies.
“For the 12‑month period ending November 30, 2023, the total number of insolvencies increased by 23.2% in comparison to the 12‑month period ending November 30, 2022,” the OSB said. “Consumer insolvencies for the 12‑month period ending November 30, 2023, increased by 22.7% in comparison to the 12‑month period ending November 30, 2022.”
Consumer bankruptcies saw a 5% rise, while consumer proposals exhibited an even greater 28.6% surge. The OSB said that the share of proposals in consumer insolvencies went up to 78.6% during the 12-month period ending November 30, 2023, up from 75% during the same period in 2022.
RBC Economics study shows Canadian spending slowing due to debt pressures. While spending is steady, early signs of weakness coincide with a slight unemployment rate increase.https://t.co/r5amlMW8vO#mortgagenws #mortgageindustry #householddebt #economy
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 11, 2023
Additionally, in the 12-month period ending November 30, 2023, consumer insolvency filings represented the vast majority (96.3%) of total insolvency filings.
Business insolvencies registered a significant annual gain of 36.8% in November, with insolvencies for the 12-month period ending that month posting a robust 38.3% year-over-year surge.
By sector, “retail trade, accommodation and food services, and construction registered the biggest increases in the number of insolvencies,” the OSB said.
