At the same time the cost of living is creeping ever higher, so too are the number of insolvency filings from Canadian consumers.
Data released by the Office of the Superintendent of Bankruptcy Canada shows that the number of Canadians filing for personal bankruptcy may be returning to pre-pandemic levels.
During the height of the COVID-19 pandemic, government subsidies have kept consumer debt at bay resulting in fewer bankruptcies or consumer proposals, a process where a person in debt pays a smaller percentage of owed money to their creditors. Now that the subsidies have dried up, those numbers are on the rise.
Ontarians filed more than 8,800 personal bankruptcies and debt repayment proposals in the second quarter of 2022 – up 16.5 per cent over the same period in 2021, and 12.8 per cent higher than the first quarter of the year. Of those, 3,500 insolvencies were filed in Toronto,…