Signs of financial distress increased in February, with bankruptcy and consumer insolvency activity on the rise, according to the Office of the Superintendent of Bankruptcy (OSB).
The federal agency reported that the total number of insolvencies surged by 13.1% in February from the previous month. Consumer proposals jumped by 15.9% from January, and bankruptcies rose 6.1%.
For the 12‑month period ended Feb. 28, the total number of insolvencies increased by 0.8% compared with the same period a year earlier.
For the 12 months, consumer bankruptcies were down by 9.9%, but consumer proposals were up 6.1%, and business insolvencies rose by 3.5%.
The OSB reported that the transportation and warehousing, and construction sectors experienced the biggest increase in insolvencies; the real estate, rental and leasing, and retail trade sectors saw the largest declines in insolvency activity.