January consumer insolvencies in Canada drop 36% Y-o-Y

The total number of insolvencies (bankruptcies and proposals) in Canada decreased by 3.7% in January 2021 compared to the previous month. Bankruptcies decreased by 16.3% and proposals increased by 3.4%, according to data released by the government.

The total number of insolvencies in Canada was 36.1% lower in January 2021 than the total number of insolvencies in January 2020. Consumer insolvencies decreased by 35.8%, while business insolvencies decreased by 47.1%.

For the 12‑month period ending January 31, 2021, the total number of insolvencies decreased by 33.0% compared with the 12‑month period ending January 31, 2020.

Consumer insolvencies for the 12‑month period ending January 31, 2021, decreased by 33.1% compared with the 12‑month period ending January 31, 2020. Consumer bankruptcies decreased by 42.5%, while consumer proposals decreased by 27.0%. The proportion of proposals in consumer insolvencies increased to 66.3% during the 12‑month period ending January 31, 2021, up from 60.8% during the 12‑month period ending January 31, 2020. For the 12‑month period ending January 31, 2021, consumer insolvency filings accounted for 97.2% of total insolvency filings.

Business insolvencies in Canada for the 12‑month period ending January 31, 2021, decreased by 28.5% compared with the 12‑month period ending January 31, 2020. The two sectors that registered the biggest decrease in the number of insolvencies were construction, and manufacturing. Arts, entertainment and recreation as well as management of companies and enterprises experienced the biggest increase in insolvencies.

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