A growing number of Canadians are seeking insolvency protection, based on the most recent figures released by the Office of the Superintendent of Bankruptcy, as the escalating living expenses are pushing consumers to their financial limits.
In the initial quarter of 2026, a total of 37,121 Canadians filed for insolvency — marking the highest volume of consumer insolvencies since the aftermath of the financial crisis in 2009.
The data reveals an 8.5 percent increase in insolvencies compared to the same period last year.
Considering the rise in population since 2009, insolvency trustee Doug Hoyes points out that when adjusted for population growth, current insolvency rates are relatively lower than those seen in 2009.
Nonetheless, Hoyes expresses concern over the surge in insolvencies and notes a rise in inquiries to his office as Canadians face mounting costs across various essentials such as food and fuel.
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“Our expenses are increasing at a much faster rate than our incomes,” Hoyes remarked. “To bridge this gap, people are resorting to taking on debt.”
The spike in consumer insolvencies, where individuals struggle with debt obligations, has hit its highest quarterly level since the financial crisis of 2009, largely influenced by economic challenges. Analysts suggest the situation may persist.
Hoyes elaborates that while most Canadians can manage a couple of tough months, prolonged escalations in costs due to various factors like trade disputes and conflicts lead to a buildup of debts.
“Many individuals are now at a breaking point where they can no longer cope,” Hoyes emphasized.
Growth in Bankruptcies Outpacing Proposals in Some Regions
British Columbia observed the largest surge in insolvencies, registering a 16.2 percent rise compared to the same period in 2025. Prince Edward Island and Ontario followed closely with increases of 15.3 and 14.7 percent, respectively.
Among all insolvencies nationwide, bankruptcies constituted 20 percent of first-quarter filings, while consumer proposals, allowing individuals to repay debts over a few years while retaining assets, comprised the remaining 80 percent.
In provinces like Ontario and Alberta, the rate of bankruptcies outpaced that of proposals, a concerning trend according to experts.