Consumer Insolvencies Approach Record In Debt-Weary Canada

Canadian consumers filed the largest number of insolvencies in almost a decade at the end of last year, stoking concern about the impact of record indebtedness on households and the economy, Bloomberg News reported. Insolvencies totaled 35,155 in the final three months of 2019, the most in any one quarter since 2010, according to data released Monday by the Office of the Superintendent of Bankruptcy Canada. That’s up 10.2% compared with 31,900 in the same period a year earlier and is about 5,000 shy of the record 40,589 reached in the third quarter of 2009. After declining steadily after the financial crisis, insolvencies began accelerating again last year, prompting questions about whether the country’s record household debt -- C$2.3 trillion ($1.7 trillion) at the end of December -- is sustainable. Read more