Bankruptcies drop in July

OTTAWA – The transportation and warehousing sectors led the way in a decline of business insolvencies in July 2010, compared to the previous month.

According to new statistics from the Office of the Superintendent of Bankruptcy, a reduction of insolvencies in those sectors, as well as in manufacturing and retail trade, contributed to an overall decrease in businesses insolvencies for the 12-month period ending July 31.

The office reports that the total number of insolvencies in Canada fell by 13 percent in July from the previous month. It pointed out, however, that bankruptcies and insolvency proposals are traditionally lower in July than in June.

On a year-over-year basis, insolvencies were down more than 21 percent in July.

Consumer insolvencies were down more than 20 percent while business filings decreased nearly 30 percent.

But the for the 12-month period ended July 31 total insolvencies are still higher, edging up 0.6 percent entirely due to an increase in consumer insolvencies, the government agency said.