Unfortunately, Quebec is the leader in personal bankruptcies in Canada, even though 2020 was exceptional.
Last year saw a historic decline in the number of insolvencies. It is largely thanks to the help of banks and governments that many Quebecers have avoided financial ruin.
However, at the beginning of the year we are already seeing an increase in the number of bankruptcies and consumer applications.
There were 857 personal bankruptcies in Quebec in January, representing a 4% increase in bankruptcy filings.
In Canada there were 2,257 personal bankruptcies in the same month, a decrease of 4%.
Is Quebec facing a significant increase in bankruptcies in the coming months? It's difficult to predict, says Éric Lebel, partner and licensed insolvency practitioner at Raymond Chabot.
“We have seen a slight increase in the last two months. We are at about 55% of 2019 volume. Whether this decline continues is something we think about in the short term,” he says.
According to him, the number of bankruptcies is likely to remain low as long as financial help is available on both sides.
However, given Canada's debt ratio, he does not rule out a return to 2019 numbers.
One thing is certain: there is hardly any change in the profile of the applicants. The majority of customers are 35 to 55 years old, says Mr. Lebel.
“As you know, this is where we have the greatest financial burden,” he explains.
Job loss, illness and separations remain the top reasons taxpayers file for bankruptcy.
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