A new report from the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) revealed a 33% surge in the number of insolvent Canadians in January 2023 compared to the same period last year. The report attributed the rise to high interest rates and increasing inflation. The Office of the Superintendent of Bankruptcy confirmed that consumer insolvency filings rose by 14.2% from the previous month. The report claimed that people struggling to make ends meet were relying more on credit cards and lines of credit to pay for essential items, leading them into deeper financial vulnerability. Furthermore, it was emphasized that Canadians are more frequently using legally binding consumer proposals to pay creditors a portion of the outstanding debt. The report also noted an increase in business insolvencies, which shot up by 55.4% year-over-year, due to higher interest rates, inflation and reduced government support payments. In January 2023, 331 businesses filed for insolvency, a slight reduction from the previous month.