Jump In Insolvencies Heralds Pandemic Hit to Canadian Households

The number of insolvency filings in Canada jumped in September to the highest since the pandemic began, in what may be the first sign of long-anticipated strains in household finances from the crisis, Bloomberg News reported. The Office of the Superintendent of Bankruptcy Canada reported 7,658 consumer insolvency filings, up 18.5% from August. That’s the biggest monthly increase since 2017, and the most since March when widespread lockdowns were imposed to control the spread of Covid-19. Despite the one-month increase, insolvencies remain at historically low levels -- which has been the case for most of 2020 as households continue to benefit from government support measures and payment deferrals from creditors. September filings are still down 36% from the same month in 2019. Read more