Insolvencies in Canada Slump to 24-Year Low on Support

(Bloomberg) -- The number of insolvency filings in Canada plunged to the lowest level since 1996 as massive cash injections from the federal government kept households afloat during the Covid-19 pandemic.

There were 6,464 consumer insolvency filings in August, down 1.8% from July and 42.7% from a year earlier, according to the latest data from the Office of the Superintendent of Bankruptcy Canada. From April to August, filings averaged 6,442 per month, the lowest for a five-month period since 1996.

The pandemic created an unprecedented shock to Canada’s labor market, resulting in the loss of more than 3 million jobs at its peak. But government support measures, including more than C$60 billion ($45 billion) in emergency income support, have cushioned households from the worst effects of the crisis.

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