I owe, I owe…

Household debt rising; so are insolvencies

Record debt levels may be catching up with Canadians.

The Office of the Superintendent of Bankruptcies (OSB) says consumer insolvencies rose 5.7 percent in March to just under 12,000 – the highest number of filings in any month since March 2011.

As of the first quarter, Canadian household debt stood at $2.17-trillion, which many believe to be unsustainable

After years of decline, insolvencies have started to nudge higher again.

Insolvencies include bankruptcies and proposals. The OSB says consumer bankruptcies fell 3.9% in March from a year earlier, while proposals, where the debtor agrees with creditors to pay a certain proportion of what’s owed, climbed 12.9%.