Posthaste: Insolvencies jump in Canada as interest rate hikes, inflation bite

Insolvency trustees are expecting to see even more in the months ahead. Find out more.

Consumers are also under pressure. CAIRP’s data show there were 25,266 insolvencies in Q2, up 10.5 per cent compared to the same time last year, and up 9.2 per cent from the previous quarter, in what is the “highest volume” in two years. They are up 32 per cent compared to 2020.

Things are expected to get worse. During the pandemic, consumer insolvencies fell 40 per cent amid ample government supports that kept Canadians’ finances afloat, CAIRP said. But now that such financial aid has been removed, insolvencies are starting to bounce back, though they still remain below 2019 levels.Plus, interest rates are rising at a fast clip, a shock for some people’s finances.

“Many may continue to rack up more debt to make ends meet — whether by taking on loans, increasing home equity lines of credit or spending on credit cards — but that is simply pouring fuel onto the fire,” Bolduc said.Article content

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