Insolvencies (bankruptcies and proposals filed under insolvency statutes) surged in August, increasing 13.7% compared to the previous month and 27.6% compared to August of 2021, according to figures just released by the federal Office of the Superintendent of Bankruptcy. 

Of those, business insolvencies increased a whopping 66.1% over last year.  Accommodation, food services and construction recorded the biggest increases.

Inflation, interest rate increases, and increasing signs of a looming recession, are all likely explanations for the surge.  As the various government financial aid programs for pandemic relief and support draw to a conclusion, these trends can only be expected to continue.

Navigating financial difficulties is challenging at the best of times, and now more than ever troubled businesses need informed advice about their situations and available options.

If you are facing business challenges, early advice can help to avoid a total collapse of the business. Even where recovery is not possible, timely advice on the options open to you can help to avoid bankruptcy or minimize the personal impact of a business failure.

To learn more about the full range of services we offer to individuals and businesses in financial difficulty, please visit our Insolvency Solutions page.

Gehlen Dabbs Cash LLP regularly advises businesses on corporate restructuring options, including informal compromises with creditors, workouts, and more sophisticated options such as proposals under the Bankruptcy and Insolvency Act, or court proceedings under the Companies’ Creditors Arrangement Act.  

You can connect with our firm by calling 604-642-6422 or completing our short online form.

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