High debt levels and rising interest rates could mean that the latest bankruptcy statistics are the calm before the storm.
December figures for consumers (97 percent of all bankruptcy filings in 2021) show an annual decrease of 6.7%, down 16.5% for bankruptcies and a 1.5% drop in resolutions. Among the resolutions were about 7 out of 10 consumer bankruptcy in 2021.
Meanwhile, business insolvency declined 11% year-over-year, with the biggest declines in retail, and housing and food services. Manufacturing, and transportation and storage recorded the biggest growth.
For those who started 2022 in precarious financial position, the BoC’s decision to keep interest rates on hold may have offered relief for now.
How many people were bankrupt?
While the percentages are positive, there were still 92,572 people and businesses that filed for bankruptcy in 2021, with 7,020 filings in December.