TORONTO — Consumer insolvencies in Canada experienced a notable increase in 2025, rising by 2.3 per cent compared to the previous year, 2024. This data was compiled by the Office of the Superintendent of Bankruptcy (OSB), which revealed that the total number of consumer insolvencies, including bankruptcies and proposals where creditors agree to settle debts under modified terms, reached 140,457. This figure is an increase from 137,295 reported in 2024.

The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) highlighted that this surge represents the second-highest annual volume of consumer insolvencies recorded since the OSB began its tracking in 1987, making it the highest annual figure seen since 2009. Wesley Cowan, a licensed insolvency trustee and vice-chair of CAIRP, attributed this rise to the ongoing struggles faced by households due to several compounding factors. Many families are still grappling with the cumulative effects of years characterized by high inflation, increasing borrowing costs, and strained household budgets.

Geographically, the increase in consumer insolvencies was particularly pronounced in British Columbia, where there was a staggering 10.6 per cent rise year-over-year. Newfoundland and Labrador also saw a significant increase of seven per cent, while Prince Edward Island recorded a climb of 6.1 per cent. These statistics underscore the challenges many Canadians are facing across different provinces.

On the other hand, the landscape for businesses was markedly different in 2025. Business insolvencies fell significantly, with a decrease of 21.8 per cent, dropping from 6,188 in 2024 to 4,840 in 2025. This decline in business-related insolvencies suggests a contrasting economic environment where businesses may have been better positioned to manage their finances compared to consumers.

This report sheds light on the current state of consumer and business insolvencies in Canada. The findings reflect broader economic trends and the financial pressures that Canadians are facing. As households continue to navigate through economic challenges posed by inflation and high costs, the increasing number of consumer insolvencies paints a concerning picture of financial stability in the country.