Insolvency Statistics in Canada — April 2011
The total number of insolvencies (bankruptcies and proposals) in Canada decreased by 10.6 percent in April 2011 from the previous month. Bankruptcies decreased by 8.3 percent, whereas proposals decreased by 14.8 percent. Over the past 10 years, there were only four years when the total number of insolvencies filed in the month of April was higher than the total number filed in March.
The total number of insolvencies in April 2011 was 12.8 percent lower than the total number of insolvencies in April 2010. Consumer insolvencies have decreased by 12.2 percent, while business insolvencies have decreased by 27.5 percent.
For the 12-month period ending , the total number of insolvencies decreased by 12.1 percent compared with the 12-month period ending . It is worth noting that the total volume of insolvency still remains 17.1 percent higher than the 12-month period (October 2007 – September 2008) preceding the recession.
For the 12-month period ending , consumer insolvencies decreased by 11.7 percent compared with the 12-month period ending . Consumer bankruptcies decreased by 20.1 percent, while consumer proposals increased by 12.2 percent. For the 12-month period ending , 96.4 percent of total insolvencies were filed by consumers.
Business insolvencies for the 12-month period ending , fell by 22.2 percent compared with the 12-month period ending . A reduction in the number of insolvencies among the transportation and warehousing; retail trade; construction; manufacturing; professional, scientific and technical services; and accommodation and food services sectors largely contributed to this decrease.
The proportion of proposals in consumer insolvencies increased to 33.1 percent during the 12-month period ending , up from 21.6 percent during the 12-month period ending . This increase may be an indication that consumers are taking advantage of changes to the Bankruptcy and Insolvency Act (BIA). The changes, implemented on , allow consumers more flexibility in filing proposals.
In April 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 – April 2011 Report, which pertains to bankruptcies and proposals filed under the BIA, does not include CCAA filings.
Read the report Insolvency Statistics in Canada – April 2011.
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