The total number of insolvencies in Alberta – for both consumers and businesses – is on the rise.
According to the most recent information released by the Office of the Superintendent of Bankruptcy, insolvencies spiked in October in the province.
Bankruptcies in Alberta for consumers were up 8.7 per cent compared with October 2018 while proposals rose by 10.6 per cent.
For businesses in the province, bankruptcies rose by 15.4 per cent year-over-year from 13 to 15 in October of this year while proposals were up 125 per cent going from four a year ago to nine this year.
In Canada, the office reported the total number of insolvencies increased 13 per cent than the total number of insolvencies in October 2018. Consumer insolvencies increased by 13.4 per cent, while business insolvencies decreased by 2.2 per cent.
For the 12-month period ending October 31, 2019, the total number of insolvencies increased by 8.8 per cent compared with the 12-month period ending October 31, 2018.
“Consumer insolvencies for the 12-month period ending October 31, 2019, increased by 8.9 per cent compared with the 12-month period ending October 31, 2018. Consumer bankruptcies decreased by 1.9 per cent, while consumer proposals increased by 17.7 per cent. The proportion of proposals in consumer insolvencies increased to 59.8 per cent during the 12-month period ending October 31, 2019, up from 55.3 per cent during the 12‑month period ending October 31, 2018. For the 12-month period ending October 31, 2019, consumer insolvency filings accounted for 97.3 per cent of total insolvency filings,” said the office in its report.
“Business insolvencies for the 12-month period ending October 31, 2019, increased by 4.2 per cent compared with the 12-month period ending October 31, 2018. The two sectors that registered the biggest increase in the number of insolvencies were professional, scientific and technical services; and other services (except public administration). Retail trade; and transportation and warehousing experienced the biggest decrease in insolvencies.”
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