November 2022 saw the highest number of Canadian insolvencies since the onset of pandemic lockdowns in March 2020. The numbers were recently released by the Office of the Superintendent of Bankruptcy..Bromwich + Smith, which supports Canadians with debt relief options such as consumer proposals and bankruptcy, said many people feeling increasingly vulnerable to ongoing economic shocks..“This is the first time we've seen numbers close to pre-pandemic levels,” said Michelle Statz, CIRP, licensed insolvency trustee at Bromwich + Smith, said in a press release..“With the end of government benefits such as CERB and the onset of record inflation, it was just a matter of time until the other shoe would drop, and people would start to feel the full effects.”.Nationally, there were 9,784 insolvency filings in November. This was the highest volume of filings in 32 months. The number was 17.5 per cent higher than in November 2021..Alberta’s 1,402 insolvency filings were 8.5% higher than in November 2021. BC’s 974 insolvencies saw a 32.5% increase. Saskatchewan’s 313 insolvencies represented a 15% hike, and Ontario’s 3,475 insolvencies were 15% higher a year prior..Insolvencies in the remaining provinces were as follows..· Nova Scotia - 330.· New Brunswick - 274.· Manitoba - 247.· Newfoundland and Labrador – 142.· P.E.I. - 33.Bromwich + Smith said insolvencies began to pick up in May. Interest rates increased in the cost of variable rate, renegotiated mortgages and a reduction in the demand for homes. Some debtors needed to repay government supports as creditors came calling.
