Bankruptcies and consumer proposals are rising as Canadians struggle.
The increasing cost of living and rising interest rates are taking a toll on the finances of a growing number of Canadians.
According to recent reports, the number of bankruptcy filings and consumer proposals in October and November reached 22,961. That’s the most in a two month span since 2011.
The damage is worst in Alberta, where insolvencies rose 16%. Insolvencies were up in all provinces, except for Prince Edward Island – where they remained at the same level.
As noted by BNN Bloomberg, things are likely to get worse:
“About 66 per cent of Ontario insolvencies in November were consumer proposals, which is the highest share on record, and may indicate trouble to come, according to Ted Michalos, a licensed insolvency trustee and co-founder of the firm. In a proposal, the debtor agrees with creditors to pay a proportion of what’s owed and is allowed to keep their assets, versus bankruptcies, where debts are written off but assets are usually forfeited, with the exception of certain provincial exemptions. “Increased proposal filings may represent the tip of the wave,” Michalos said by email. “The people that want to be pro-active file first, the rest of the folks that are in trouble are still to follow.”
Amazingly, despite all of this evidence of Canada’s economic problems, the establishment media and political elites are still trying to convince us that the economy is ‘strong.’
The Trudeau Liberals and their media helpers are desperate to spread a false narrative on the economy, because they fear losing power if people realize how badly Trudeau’s policies are damaging Canada’s economic prospects and the finances of the Canadian People.
The economy is slowing, investment is collapsing, and the carbon tax is making life more expensive as interest rates rise. That all adds up to a big problem for our country.