The Office of the Superintendent of Bankruptcy Canada says the total number of insolvencies in August 2020 fell 42.4 compared with August 2019.
The OSB’s Sept. 28 update says 42.7 per cent fewer consumers filed in August compared to a year ago, while business insolvencies decreased by 25.5 per cent year-over-year.
The data does not include filings under the Companies’ Creditors Arrangement Act, which has been used for creditor protection this year by companies such as Mountain Equipment Co-operative, Groupe Dynamite, David’s Tea and Reitmans Ltd.
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Among the businesses that were counted in the OSB report, construction, and accommodation and food services saw the biggest year-over-year declines in insolvency filings.
Retailers and entertainment venues saw the biggest increase in insolvency filings in August.
Keith Emery, co-CEO at Credit Canada Debt Solutions, says that despite the drop, a wave of consumer insolvencies could come later this year, amid the end of debt payment deferral programs and wind down of emergency government support.