Canadian insolvencies were up last year with a greater spike in the last quarter of 2019 (iStock)

Canadians in financial crisis are on the rise

In 2019, 375 Canadians per day sought financial protection or debt restructuring

Canadian consumer insolvencies jumped dramatically at the end of 2019 to the highest level in almost a decade.

There were over 35,000 insolvencies filed in the last quarter of the year, the most in any quarter since the record of 40,500 in the third quarter of 2009.

For the year, there were over 137,000 cases representing a 9.5 per cent increase or 12,000 more than in 2018.  This figure however includes both bankruptcies and proposals, the latter being where a debtor agrees to pay back a portion of the debt.

Still bankrupticies increased 1.7 per cent

The highest rates for insolvencies were in Ontario at an increase of over 15 per cent from 2018, followed by Alberta at just under 15 per cent, and British Columbia at over 10 per cent.

Business insolvencies were up 2.8 per cent in 2019.

While personal insolvencies were up noticeably across Canada, there was also an increase in business insolvencies (submitted-via CBC)

What is concerning to analysts is that the insolvencies are occurring at a time of a relatively stable economy and low unemployment rate of 5.7 per cent.  The last time insolvencies peaked a decade ago, the unemployment rate was 8.6 per cent.

A corporate insolvency expert noted that downturns in several sectors including resource industries and the information and cultural sectors.

Alberta-based David Lewis said that business may deal with financial pressures by cutting back on expenditures, capital investment and on staff which in turn has a knock-on effect which could increase consumer insolvencies.

Adding to the concern is the record level of household debt in Canada which stood at $2.3 billion by the end of December. There have long been fears that an increase in the low interest rates could push many of those currently struggling with debts, over the edge into insolvency.

Additional information-sources

Categories: Economy, Society
Tags: , ,

Do you want to report an error or a typo? Click here!

@*@ Comments

Leave a Reply

Note: By submitting your comments, you acknowledge that Radio Canada International has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Radio Canada International does not endorse any of the views posted. Your comments will be pre-moderated and published if they meet Netiquette guidelines.

When you express your personal opinion in an online forum, you must be as courteous as if you were speaking with someone face-to-face. Insults and personal attacks will not be tolerated. To disagree with an opinion, an idea or an event is one thing, but to show disrespect for other people is quite another. Great minds don’t always think alike—and that’s precisely what makes online dialogue so interesting and valuable.

Netiquette is the set of rules of conduct governing how you should behave when communicating via the Internet. Before you post a message to a blog or forum, it’s important to read and understand these rules. Otherwise, you may be banned from posting.

  1.’s online forums are not anonymous. Users must register, and give their full name and place of residence, which are displayed alongside each of their comments. reserves the right not to publish comments if there is any doubt as to the identity of their author.
  2. Assuming the identity of another person with intent to mislead or cause harm is a serious infraction that may result in the offender being banned.
  3.’s online forums are open to everyone, without regard to age, ethnic origin, religion, gender or sexual orientation.
  4. Comments that are defamatory, hateful, racist, xenophobic, sexist, or that disparage an ethnic origin, religious affiliation or age group will not be published.
  5. In online speak, writing in ALL CAPS is considered yelling, and may be interpreted as aggressive behaviour, which is unpleasant for the people reading. Any message containing one or more words in all caps (except for initialisms and acronyms) will be rejected, as will any message containing one or more words in bold, italic or underlined characters.
  6. Use of vulgar, obscene or objectionable language is prohibited. Forums are public places and your comments could offend some users. People who use inappropriate language will be banned.
  7. Mutual respect is essential among users. Insulting, threatening or harassing another user is prohibited. You can express your disagreement with an idea without attacking anyone.
  8. Exchanging arguments and opposing views is a key component of healthy debate, but it should not turn into a dialogue or private discussion between two users who address each other without regard for the other participants. Messages of this type will not be posted.
  9. Radio Canada International publishes contents in five languages. The language used in the forums has to be the same as the contents we publish or in one of the two official languages, English or French. The usage of other languages, with the exception of some words, is forbidden. Messages that are off-topic will not be published.
  10. Making repetitive posts disrupts the flow of discussions and will not be tolerated.
  11. Adding images or any other type of file to comments is forbidden. Including hyperlinks to other websites is allowed, as long as they comply with netiquette. Radio Canada International  is in no way responsible for the content of such sites, however.
  12. Copying and pasting text written by someone else, even if you credit the author, is unacceptable if that text makes up the majority of your comment.
  13. Posting any type of advertising or call to action, in any form, to Radio Canada International  forums is prohibited.
  14. All comments and other types of content are moderated before publication. Radio Canada International  reserves the right to refuse any comment for publication.
  15. Radio Canada International  reserves the right to close a forum at any time, without notice.
  16. Radio Canada International  reserves the right to amend this code of conduct (netiquette) at any time, without notice.
  17. By participating in its online forums, you allow Radio Canada International to publish your comments on the web for an indefinite time. This also implies that these messages will be indexed by Internet search engines.
  18. Radio Canada International has no obligation to remove your messages from the web if one day you request it. We invite you to carefully consider your comments and the consequences of their posting.

Your email address will not be published. Required fields are marked *