February 9, 2023
The number of insolvency filings from Canadian consumers jumped 11.2 per cent in 2022 compared with 2021, according to Statistics Canada. There were 100,184 consumer insolvencies filed in 2022 compared to 90,092 in 2021, according to the federal agency.
Business bankruptcies totalled 2,621 for the year, up from 1,942, while proposals filed by businesses amounted to 781, up from 538 in 2021.
Several factors have contributed to the uptick in insolvency filings including skyrocketing inflation, which is driving up the cost of necessities like gas, food and electricity. Fluctuating interest rates are also having a significant impact on any loan payments or mortgage renewals.
For businesses struggling with lockdowns over the last three years, the Canada Emergency Business Account (CEBA) offered interest-free loans of up to $60,000 to small businesses. The government set a repayment deadline of Dec. 31, 2023 for anyone who wanted to take advantage of zero interest and having a portion of the loan forgiven.
