As we navigate through uncertain economic conditions, a new report from the Office of the Superintendent of Bankruptcy (OSB) paints a stark picture of Canadians’ growing financial challenges.
In the third quarter of 2024, there were 34,588 consumer insolvency filings, averaging 376 per day—an increase of 13.5% compared to last year. This marked the tenth consecutive quarter of rising insolvencies, underscoring the continued strain on household budgets.
While inflation may have slowed, everyday essentials like groceries remain expensive, stretching finances for many Canadians. With interest rates higher than in recent years, many Canadians are still grappling with increasing debt burdens, particularly as they face the prospect of renewing mortgages at higher rates in 2025.
Business insolvencies tell a similar story. 1,312 businesses filed for insolvency during the third quarter of 2024—an increase of 16% compared to last year.
While there was a slight quarter-over-quarter improvement, filings remain nearly 60% higher than pre-pandemic levels, indicating that many businesses continue to feel the impact of the pandemic, inflation, and rising interest rates.
This data is important because it highlights the widespread financial pressures individuals and businesses face. Those navigating these challenges must understand that they are not alone. Many are in the same boat, and resources and solutions are available to help manage and mitigate the effects of financial distress.
These insights emphasize the importance of proactive financial management and professional support in navigating debt. Whether for personal or business finances, the ability to adapt and plan for the future will be essential in the months ahead.
Article & Findings Source: Wealth Professional. (2024). Almost 400 Canadians filed for insolvency every day during the third quarter. Wealth Professional. Retrieved from https://www.wealthprofessional.ca/news/industry-news/almost-400-canadians-filed-for-insolvency-every-day-during-the-third-quarter/387551