The number of Canadians filing for bankruptcy rose 22.5% in the third quarter, the biggest percentage increase in 13 years, according to Statistics Canada.
However, despite the big year-over-year spike in this year’s third quarter, Statistics Canada said
consumer bankruptcies were down 25.5% compared to the pre-COVID-19 third quarter of 2019.
Bankruptcy filings by both businesses and consumers in Canada were down during the pandemic because of government subsidies and financial aid programs.
However, bankruptcy filings are once again increasing as those subsidies end, inflation remains entrenched, and interest rates rise across the country.
Canada’s inflation rate in September stood at 6.9%, more than three times higher than the 2% targeted by the Bank of Canada
