Insolvencies rose substantially in July, according to the latest data from the Office of the Superintendent of Bankruptcy Canada (OSB).
The total number of insolvencies, including bankruptcies and proposals, rose by 5.5% in July, compared with the previous month. The OSB reported that bankruptcies increased by 5.9% during the month, and proposals grew by 5.2%.
The rise in insolvencies is more dramatic when compared year over year. The number of insolvencies in July was up by 17.2% compared with the same month last year, with business insolvencies rising by 30.2% and consumer insolvencies up 16.9%.
Looking at the 12 months ended July 31, the number of insolvencies was up 6.5% versus the prior 12-month period, led by a 7.2% increase in business insolvencies.
A sector described as “other services” reported the biggest increase in insolvencies over that period, followed by the real estate sector, and the rental and leasing sector, the OSB noted. (Its data includes bankruptcies and proposals filed under the Bankruptcy and Insolvency Act, not filings made under the Companies’ Creditors Arrangement Act.)
For the 12-month period ended in July, consumer insolvencies increased by 6.5% year over year, with a rise in consumer proposals driving the increase, which were up by 14.3%. Conversely, the number of consumer bankruptcies decreased by 2.8% year over year.