Business Booms for Insolvency Trustees Amid Higher Canada Rates

People who make a living guiding others through bankruptcy in Canada say they’ve never been busier, Bloomberg News reported. Record debt burdens, rising borrowing costs and, in some cases, bigger payday loans are driving many Canadians to seek relief, according to several licensed insolvency trustees who spoke to Bloomberg. They say November was their busiest on record, and December -- typically a slow time of year in the insolvency trade -- hasn’t let up. “I’m essentially trying to add capacity every day to get people seen,” Blair Mantin, a Vancouver-based licensed insolvency trustee at Sands & Associates, said by phone. “Usually things slow down around Christmas, but we haven’t seen the demand slow down this year.” The interviews, while anecdotal, add to recent indications rate hikes are beginning to take a toll, and suggest insolvencies may keep rising. The latest official data from the Office of the Superintendent of Bankruptcies showed the rate of consumer insolvencies rose 9.2 percent in October on a year-over-year basis, the most since 2016. Read more