Bankruptcy Rates in Canada Reach Highest Level in Nearly 17 Years

According to Equifax Canada's latest report, the number of bankruptcies in Canada has reached its highest level since 2009, primarily due to escalating financial pressures faced by homeowners. The report, which analyzes consumer credit trends, shows an alarming 18.8% increase in bankruptcies compared to the previous year.

Rebecca Oakes, Senior Vice President of Advanced Analytics at Equifax Canada, stated that despite Canadians' efforts to manage their finances responsibly, systemic risks remain. The report highlights that bankruptcies among homeowners increased by over 11% from the previous quarter, with more than 90% opting for consumer proposals instead of declaring bankruptcy.