Consumer insolvency spiked to highest level since 2019

Consumer insolvencies have risen to their highest level since 2019, new numbers showed Wednesday, in a troubling sign that Canadians are having trouble staying on top of their debt load.

Data released from the Office of the Superintendent of Bankruptcies on Wednesday showed that 11,768 people filed insolvency paperwork in March. That’s the highest single monthly figure since late 2019.

The insolvency figure from the country’s top financial regulator includes both personal bankruptcy filings and also what’s known as proposals to creditors — where people in debt make up alternative arrangements with their creditors on terms that generally see them pay back far less than they owe.

The number of proposals to creditors touched 9,337 during the month. That’s up by more than a third since the same period last year, and the highest monthly figure since at least 2011.

After trending higher for years, bankruptcies and other forms of insolvency proceedings created during the pandemic, as general government income programs such as CERB gave people cash infusions that allowed them to keep their heads above water.

Formal bankruptcy proceedings also slowed to a crawl in part because of the shutdown of many court proceedings for much of 2020 and 2021.

So the surge in insolvency is coming from a historically low bar, but it is still a concern for economists.

“It is not clear whether insolvency is catching up after some weakness … or whether this is a new trend of accelerated increase in insolvency,” said Charles St. Arnaud, an economist with Alberta Central credit union.

St. Arnaud says Alberta is a particularly interesting province to observe at the moment, because despite strong oil prices causing the usual boom in the local economy, there are troubling signs of consumer stress.

“Albertan households have some of the highest debt-to-income ratios, making them vulnerable to rising interest rates, and have seen a bigger decline in their purchasing power than other provinces,” he said, adding that the rate of consumer proposals in the the province is higher than they’ve ever been, and a full 35 per cent higher than they were before the pandemic.

Royce Mendes, an economist with Desjardins, says spiking insolvency “points clearly to a rising number of troubled consumers and businesses.”

He notes that the last time the Bank of Canada raised lending rates, in 2017, bankruptcies didn’t start to increase until two years later.

“It’s possible that this is just a normalization after the economy experienced an extended period of very low insolvency tied to the extraordinary monetary and fiscal stimulus provided,” Mendes said. But “whether or not this is officially the beginning of a more painful economic period, Canada is still in the early innings of feeling the pass-through from higher rates.” powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 slot zeus nolimit city sv388 slot jepang scatter hitam slot thailand link slot thailand 777 slot powergaming88 slot luar negeri slot gacor maxwin slot gacor hari ini slot gacor terbaru mahjong ways 2 slot thailand jp slot slot bni slot bri slot bsi slot danamon slot gopay slot server korea slot malaysia slot amerika slot rusia fan tan monopoly live lightning roulette mega ball sweet bonanza candyland mega sic bo mega baccarat andar bahar sbobet88 ktm303 slot dubai slot qris powergaming88 Slot Thailand Slot Zeus Pg Soft Starlight Princess Slot Gacor Maxwin Joker123 Sv388 Slot Thailand Slot Thailand Slot Qris slot thailand joker123 mahjong ways 2 888slot sweet bonanza slot jepang slot thailand slot mahjong ways slot qris slot deposit dana slot dana nolimit city slot thailand sv388 slot888 slot kamboja Slot Thailand Starlight Princess Mahjong Ways 2 Slot Maxwin slot thailand akun pro kamboja slot filipina joker123 slot zeus slot88 slot thailand slot mahjong slot megaways NEW SLOT POLA GACOR Slot Server Luar jp slot slot ganas crazy time live slot qris slot akurat slot bca slot bni qris slot zeus server thailand server hongkong slot ovo slot gopay slot linkaja joker123 nolimit city sv388 starlight princess mahjong ways pg slot slot zeus sv388 idn slot slot server thailand slot thailand ladangtoto nolimit city koi gate sicbo online roulette online lice casino live22 baccarat online nolimit city slot ovo slot gopay pragmati play starlight princess slot pg soft slot mahjong slot zeus sv388 digmaan slot mania slot zeus slot thailand server thailand ying77 slot thailand judi bola live casino sv388 pg soft slot dana mahjong ways slot mania slot x500 ladangtoto slot server kamboja digmaan digmaan slot88 scv388 sabung ayam online slot live casino sicbo online live casino online slot thailand ladangtoto sv388 ladangtoto powergaming88 66kbet powergaming88 slot thailand ladangtoto slot thailand server thailand slot thailand slot thailand slot thailand slot gacor ladangtoto2 ying77 bet server thailand slot thailand ying77 slot88 ladangtoto ladangtoto slot maxwin sv388 sv388 slot gacor 66k bet slot dana sabung ayam inline slot mahjong slot toto slot server thailand slot gacor slot server thailand slot gacor slot thailand situs slot wwg slot slot daftar judi slot online indonesia slot gacor slot mawin slot gacor slot thailand slot gacor slot gacor demo slot pragmatic sv388 slot88 pgsoft Daftar Judi Slot Online Indonesia Paling Gacor di Indonesia Daftar Situs Judi Slot Online SLOT88 lucky neko slot gacor slot88 slot kakek slot maxwin slot thailand Slot Mahjong Ways 2 Mudah Jackpot Paus di PG Soft Hari ini 2023 Lucky Neko Situs Slot Gacor Pgsoft Hari Ini SITUS SABUNG AYAM SV388 ONLINE DAFTAR LINK LOGIN APK AGEN SV388
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