Canada is still having some problems with debt, and it is partly due to the covid 19 crisis, but this doesn’t mean that it’s the worse it’s ever been. It’s been slowing down a lot lately and that means that while it’s slower than average, it’s still not the worst. Many people are still filing for insolvencies and in Ontario, that number is much higher than anywhere else in Canada. Insolvencies give people a break from their debt, but it doesn’t mean the economy is in better shape because of it.
Key Takeaways:
- Emergency transfer payments and easy credit have helped delay insolvency for many households and businesses.
- Ontario has the largest number of insolvency filings, but they are rising in every province.
- BC has seen less of a slowdown than elsewhere, but YTD filings are 9.8% higher than last year.
“Canadian insolvencies fell on a year over year basis, but it’s a busy year for credit relief. There were 11,198 insolvencies in March, down 9.1% from last year. Of those, consumer insolvencies represented 10,947 of the filings, down 8.5% from last year.”
