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The number of Albertans unable to pay their debts and being forced into insolvency is on the rise and likely to grow worse, says CIBC.

In a report Tuesday, the bank said the cumulative number of personal insolvencies in Alberta rose 6.5 per cent during the six months ending in February — the worst showing since the 2008 recession — as the damage from lower oil prices showed up in people’s finances. Manitoba and Saskatchewan had the biggest increase at almost 11 per cent, it said.

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“Zooming in on the situation in Alberta, there are reasons to believe that the coming quarters will see continued deterioration,” said the report’s author, Benjamin Tal, deputy chief economist with CIBC World Markets.

He noted the number of bankruptcy proposals in the province rose by 24 per cent during the six months measured. Proposals are offers consumers make to creditors to repay only a portion of their debt.

“Given that the share of proposals in bankruptcies is the highest in Alberta, that trend is likely to lead to a higher insolvency rate in the coming quarters,” Tal wrote.