Bankruptcy cases for both consumers and Canadian companies increased significantly during the second quarter, with the rate of bankruptcy reaching nearly 400 individuals and companies daily during the referred period.

A report from the Canadian Association of Insolvency and Restructuring Professionals, released earlier this month, stated that over 35,000 Canadian consumers filed for bankruptcy during the second quarter of the year; which is an increase of 12.4%, equivalent to almost 382 applications daily.

According to the report, consumer bankruptcy cases reached their highest level since the end of 2019 as households faced high living costs, alongside elevated debt servicing costs and ongoing inflationary impacts.

"André Bouldo," the president of the association, stated in the report: "Consumer bankruptcy cases have reached their highest level in over four years, highlighting the significant headwinds that many Canadians are still facing."

The report noted that 1,541 companies filed for bankruptcy during the second quarter (17 companies daily); representing an increase of 41.4% year-on-year, however, bankruptcy cases decreased by 23.1% compared to the first quarter of the year.