Highlights
Insolvency Statistics in Canada — January 2011

The total number of insolvencies (bankruptcies and proposals) in Canada decreased by 7.6 percent in January 2011 from the previous month.  Bankruptcies decreased by 12.9 percent, whereas proposals increased by 3.7 percent.  Over the past 10 years, there were only three years when the total number of insolvencies filed in the month of January was lower than the total number filed in December.

The total number of insolvencies in January 2011 was 8.7 percent lower than the total number of insolvencies in January 2010. Consumer insolvencies have decreased by 8.1 percent, while business insolvencies have decreased by 22.1 percent.

For the 12-month period ending January 31, 2011, the total number of insolvencies decreased by 11.9 percent compared with the 12-month period ending January 31, 2010.  It is worth noting that the total volume of insolvency still remains 19.8 percent higher than the 12-month period (October  2007 – September 2008) preceding the recession.

For the 12-month period ending January 31, 2011, consumer insolvencies decreased by 11.4 percent compared with the 12-month period ending January 31, 2010.  Consumer bankruptcies decreased by 20.7  percent, while consumer proposals increased by 18.1 percent.  For the same period, 96.3 percent of total insolvencies were filed by consumers.

Business insolvencies for the 12-month period ending January 31, 2011, fell by 22.6 percent compared with the 12-month period ending January 31, 2010.  A reduction in the number of insolvencies among the transportation and warehousing; retail trade; manufacturing; construction; accommodation and food services; and professional, scientific and technical services sectors largely contributed to this decrease.

The proportion of proposals in consumer insolvencies increased to 31.8 percent during the 12-month period ending January 31, 2011, up from 21.6 percent during the 12-month period ending September 30, 2009.  This increase may be an indication that consumers are taking advantage of changes to the Bankruptcy and Insolvency Act (BIA).  The changes, implemented on September 18, 2009, allow consumers more flexibility in filing proposals.

In January 2011, two Companies’ Creditors Arrangement Act (CCAA) proceedings were filed.  Please refer to the CCAA Records for additional details.  Note: The Insolvency Statistics in Canada – January 2011 Report, which pertains to bankruptcies and proposals filed under the BIA, does not include CCAA filings.

Read the report Insolvency Statistics in Canada – January 2011.