Canadian business insolvency filings increased the most in 31 years last quarter, and rising interest rates could push the number even higher, according to the Canadian Association of Insolvency and Restructuring Professionals (CAIRP).
Business insolvency filings in Canada rose 33.8% in the first quarter compared with the same quarter last year, according to data from the Office of the Superintendent of Bankruptcy. There were 807 business insolvencies filed in Q1 compared with 603 in Q1 2021.
Of the 807 filings, 616 were bankruptcies and 191 were proposals. Business insolvency filings increased 10.1% in the first quarter compared with Q4 2021.
“The number of businesses becoming bankrupt or filing proposals is growing, and likely…