The number of insolvency filings in Canada jumped in September to the highest since the pandemic began, in what may be the first sign of long-anticipated strains in household finances from the crisis, Bloomberg News reported. The Office of the Superintendent of Bankruptcy Canada reported 7,658 consumer insolvency filings, up 18.5 percent from August. That’s the biggest monthly increase since 2017, and the most since March when widespread lockdowns were imposed to control the spread of COVID-19. Despite the one-month increase, insolvencies remain at historically low levels — which has been the case for most of 2020 as households continue to benefit from government support measures and payment deferrals from creditors. September filings are still down 36 percent from the same month in 2019. But the pick-up may suggest that reprieve is waning. There were still 1.3 million Canadian workers in September without jobs or working significantly fewer hours because of the pandemic. Filings rose 25 percent on the month in Quebec, and 15 percent in Ontario, though they are still significantly below year-earlier levels in both provinces.
