Canadian Insolvencies Have Hit a 20-year Low

Right now, in the middle of the COVID-19 pandemic, Canadian Insolvencies have hit a 20-year low. According to Superintendent of Bankruptcy, there were 8398 formal bankruptcies and consumer proposals filed in BC during the year 2020. This marks a 25% decrease from the 11348 in 2019.

While, this may seem like good news, this does not equate to economic prosperity. The decline in insolvencies is likely due to everything else slowing down, with people following quarantine and stay at home rules. At the moment, many small businesses, especially food and retail, are struggling to stay afloat. Other businesses, such as construction, have stayed relatively the same. COVID has also caused many people to become reliant on larger corporations such as Amazon, leaving smaller retailers in the dust. Government stimulus cheques have may helped, but were only a temporary solution.

So, what is next? Many analysts predict that, when things eventually do “return to normal”, Canadian Insolvencies will return to 2019 levels, perhaps even surpass them.

See Also:

https://cecraig.com/covid19-debt-crisis-help-available/

https://cecraig.com/covid19-pending-debt-crisis/