Rising Insolvency Readings In Canada Raise Red Flags — Sort Of

A surge in the number of people who can’t pay their debts is raising eyebrows in Canada, BNN Bloomberg reported. Some 11,935 consumers filed for insolvency in September, according to the Office of the Superintendent of Bankruptcy — a 19-per-cent increase from a year earlier and the biggest annual gain since 2009. So far in 2019, there have been 102,023 consumer insolvencies, the second-most for the first nine months of a year in records dating back to 1987. While the increases are coming from low levels, the trend is a worrying development that suggests cracks are starting to appear in Canada’s household debt landscape, at least for the most extended individuals. That would be all the more concerning, since it could foreshadow pressure on the country’s financial system. Read more