Economics

More People Are Going Broke in Canada as Interest Rates Rise

  • Every province saw rise in insolvency filings except P.E.I.
  • Debt relief proposals ‘may be tip of the wave,’ trustee says

Shoppers exit the Eaton Centre mall in Toronto.

Photographer: Brent Lewin/Bloomberg

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An increasing number of Canadians can’t meet their financial obligations, another sign rising borrowing costs are taking a toll on household balance sheets.

The number of consumers seeking debt relief jumped 5.1 percent to 11,320 in November from a year earlier, the Ottawa-based Office of the Superintendent of Bankruptcy reported on Jan. 4. October and November combined saw 22,961 consumer insolvency filings, the most for those two months since at least 2011.