Rising filings and lingering stigma show many Canadians are still grappling quietly with heavy debt
Canada’s latest insolvency data shows household financial strain continuing to climb.
New figures from the Office of the Superintendent of Bankruptcy report a 4.8% year-over-year increase in consumer insolvencies in Q3 2025, reaching 36,256 filings and marking the highest quarterly total since 2009 and the third-largest since tracking began in 1987. Filings also rose 3.3% from the previous quarter.
Wesley Cowan, licensed insolvency trustee and vice chair of CAIRP says these numbers reflect real financial pain affecting Canadian households.
“Behind these numbers are Canadians who continue to struggle to balance daily expenses with mounting debt obligations. For many, consumer insolvency filings are the result of financial pressures that have been building quietly for some time,” he says, adding that people often delay getting help until they are overwhelmed. “But opening up about debt earlier — even just having that first conversation — can make a world of difference.”
Consumer insolvencies also far exceed historic norms and are 17.1% higher than the pre-pandemic five-year Q3 average and 29.4% above the recent four-year average. Over the 12 months ending September 30, 2025, filings reached 139,335, up 2.9% from the previous year. Stigma continues to mask the full extent of financial distress.
Ontario and Quebec recorded the highest volumes of filings, while British Columbia saw the sharpest year-over-year surge at 19.4%. Prince Edward Island and Newfoundland and Labrador also posted notable increases.
Business insolvencies, meanwhile, dropped to 1,108 in Q3 — a 15.5% decline from last year — though CAIRP warns the decrease may reflect delayed filings rather than improved conditions for Canada’s struggling businesses.
“The drop in business insolvencies doesn’t necessarily mean businesses are in better shape,” explains Craig Munro, licensed insolvency trustee and chair of CAIRP. “Some owners may be delaying filings by juggling debt or negotiating informally with creditors. Others simply wind down operations without entering the insolvency system, which means their financial challenges aren’t reflected in the official numbers.”
