Fewer Canadian consumers and businesses filed for insolvency at the height of the pandemic-induced economic shutdown compared to both the first three months of 2020 and the same period a year ago, according to Office of the Superintendent of Bankruptcy (OSB) data released on Wednesday.?
The number of both consumer and business insolvencies declined by a record amount.
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Consumer insolvencies dropped 42.3 per cent in the second quarter of 2020 compared to the first quarter of the year, and 45.4 per cent from the same period last year, while the number of companies filing proposals or bankruptcies decreased 31.3 per cent compared to the first three months of 2020, and 37.7 per cent from a year ago
At first glance, the data appear to contradict the general economic climate, which has experienced consecutive months of high unemployment, and surges in both the number of small businesses shutting down and large retailers filing for creditor protection.?