The Office of the Superintendent of Bankruptcy reported a 58.3% increase in Canadian business insolvency filings in the 4th quarter of 2022 (October to December). From the business owners that I have recently met with, the causes of their financial difficulties stem from:

  • Rising interest rates resulting in significantly higher monthly payments on bank loans and operating lines of credit 
  • Delays in obtaining product during the pandemic due to supply and shipping issues
  • Increased costs of inventory, shipping and operating expenses
  • Large amounts owing for HST, unremitted source deductions and personal income tax and Canada Revenue Agency is starting to press for payment
  • Concern about obligation to repay government CEBA loan of $40,000 or $60,000 by December 31st, 2023, to be eligible for grant
  • Lack of employees to operate efficiently; and
  • Consumers are cutting back and being more cost-conscious

A Licensed Insolvency Trustee can assist with two solutions to deal with an insolvent business:

  • assignment in bankruptcy
  • a proposal which is an offer to your creditors to compromise your debt

Many factors have to be considered in evaluating the best solution for you. At a free initial appointment with Taylor Leibow Inc., we will review your business’s financial situation in detail and explore if a bankruptcy or proposal can allow you to continue to operate your business for a profitable future. Reach out to us today

Kathy portraitBy Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)