The number of consumer bankruptcies in Quebec rose nearly 22% last month from a year earlier, according to data from Innovation, Science and Economic Development Canada (ISED) released on Friday.
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Overall, bankruptcy filings by consumers under the Bankruptcy Act have increased from 687 in May 2022 to over 837 in the last month. This is an increase of 21.8%.
“Despite the fact that the number of people in financial difficulties is increasing, there are still more people in Quebec who have the means to make a settlement offer to their creditors,” explains Pierre Fortin, president of Jean Fortin and the Journal Associated .
“During the year there is a drop of almost 5% [du nombre de faillites]», Nuances, the specialist in debt consolidation.
More people strong enough to suggest (1,357 in May 2022, compared with 1,845 last month, or +36%).
Last November, Le Journal reported that inflation and rising interest rates increased the number of insolvent consumers in Quebec by 16% year over year in the third quarter.
And in a sign that inflation continues to hurt Quebecers’ wallets on all sides, Le Journal showed last Wednesday that even dining out costs nearly 9% more than on the same day last year.
Strong employment
However, according to Pierre Fortin, Quebec is still doing better than before as it is the second largest province after Manitoba, has the lowest consumer credit ratio (personal debt) in Canada and our job market remains strong.
“We have one of the lowest unemployment rates in the country. What also helps us a lot is that less of our family budget is spent on house building. Even though they have increased a lot, houses still cost less than in the rest of the country,” he continues.
Before the pandemic, Quebec accounted for 32% of all bankruptcy filings across Canada, but today that number has dropped to 25%, he points out.
“That’s a good thing. We have fewer files here than before,” concludes the President of Jean Fortin et Associés.
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