Insolvency filings on the rise in B.C., across Canada as possible recession looms
CTV
The number of people and businesses struggling with insolvency in British Columbia increased substantially in November, according to recently released data from the federal government.
The number of people and businesses struggling with insolvency in British Columbia increased substantially in November, according to recently released data from the federal government.
There were 974 insolvency filings under the federal Bankruptcy and Insolvency Act in B.C. in November 2022, up from 735 in November 2021, an increase of 32.5 per cent.
Most of the filings were not bankruptcies, but rather "proposals" – formal agreements under the act that offer to settle debts on conditions other than their existing terms.
B.C. saw 789 proposals and 185 bankruptcies during the month in question. Both types of filings are considered insolvencies in the statistics released by the federal Office of the Superintendent of Bankruptcy this week.
The B.C. numbers reflect a nationwide pattern. Across Canada, there were 9,784 insolvencies in November, a 17.5 per cent increase from the same month in 2021.
Looking at the 12 months ending in November, insolvencies were up 10.2 per cent nationwide compared to the preceding 12 months. In B.C., filings grew by 15.9 per cent over the same period.
Grant Bazian, a licensed insolvency trustee and the president of MNP Ltd., told CTV News the increase is the result of several different factors.
