Bankruptcies and debt proposals continued to rise in September amid tougher financial conditions, according to the latest data from the Office of the Superintendent of Bankruptcy Canada (OSB).
The total number of insolvencies (including both bankruptcies and proposals) rose by 3.1% on a month-over-month basis in September, and the volume of insolvencies was up 22.5% from the same month last year, the agency reported.
Year over year, consumer insolvencies rose by 22.1%, and business insolvencies surged by 37.0%, the OSB said.
For the 12-month period ended Sept. 30, the total number of insolvencies was up by 6.5% compared with the same period last year.
Again, business insolvencies led the way, rising by 29.7% on an annual basis.
The largest increases in business insolvencies came in the accommodation & food services and construction sectors, the OSB said.
At the same time, consumer insolvencies were up by 5.9% year over year: bankruptcies decreased by 12.4%, but consumer proposals rose by 14.3%.