The most recent data from the Office of the Superintendent of Bankruptcy shows a surge in insolvency filings by Canadians, attributed to escalating costs putting pressure on consumers.
In the first quarter of 2026, a total of 37,121 Canadians filed for insolvency, marking the highest number of consumer insolvencies since 2009 during the financial crisis.
Comparing figures to the same period last year, insolvencies have increased by 8.5 per cent.
Insolvency trustee Doug Hoyes notes that considering the higher current population compared to 2009, the insolvency rates, when adjusted for population growth, are relatively lower than in the past.
Despite this, Hoyes expresses concern over the rising trend, indicating a rise in inquiries to his office due to the escalating costs of essentials like food and fuel affecting Canadians.
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“Our expenditures are outpacing our incomes significantly,” Hoyes remarked. “To bridge this gap, individuals resort to accumulating debt.”
The spike in consumer insolvencies, driven by economic challenges and escalating living costs, has reached its highest level since the 2009 financial crisis, with no immediate signs of relief.
Hoyes points out that while many Canadians can withstand short-term financial strains, prolonged periods of increased expenses due to various factors like trade disputes and conflicts lead to mounting debts.
“A significant number of individuals are now reaching a breaking point where they can no longer manage,” Hoyes added.
Increase in Bankruptcies Outpacing Proposals in Selected Provinces
British Columbia witnessed the most substantial rise in insolvencies, recording a 16.2 per cent surge compared to the same period in 2025. Following closely were Prince Edward Island and Ontario with increases of 15.3 per cent and 14.7 per cent, respectively.
Among all insolvencies nationwide, bankruptcies comprised 20 per cent of first-quarter filings, while consumer proposals, allowing gradual debt repayment over a few years while retaining assets, constituted the remaining 80 per cent.
In specific provinces like Ontario and Alberta, bankruptcies surged at a faster rate than proposals, a concerning trend according to experts.
According to Anna Lund, a law professor at the University of Alberta, bankruptcies necessitate immediate surrender of assets such as vehicles and properties by debtors to clear their debts.
