The economic conditions caused by the COVID-19 pandemic are unprecedented: unemployment is up, consumer confidence is down, countless businesses have permanently closed and many others are barely holding on. Yet the number of bankruptcies of individuals and small and medium-sized businesses has plummeted since the pandemic was declared earlier this year. Unusual as this might seem, this trend is evident throughout the developed world.
In this report, we provide a detailed analysis of the data on insolvency filings available in Canada, situated in historical, geographic and sectorial contexts.
We analyze the key trends that have emerged in bankruptcies, proposals, receiverships and arrangements under the Canada Business Corporations Act and filings under the Companies' Creditors Arrangement Act.
Finally, we offer a look ahead to what we might expect in the post-pandemic era.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.