Insolvencies in Canada are floating around levels not seen since the global financial crisis more than 15 years ago, new data shows.
The Office of the Superintendent of Bankruptcies released updated figures on Monday showing 13,254 insolvencies were filed in June, up 5.7 per cent compared with May and 11.5 per cent from a year ago.
Consumers — who make up the bulk of insolvency filings — led the annual increase, though business filings were also on the rise year-over-year.
“While the data has been quite volatile over the past year, even on a seasonally-adjusted basis, insolvencies have been stabilizing at levels not seen since the Global Financial Crisis in 2009,” said Charles St-Arnaud, chief economist at Servus Credit Union, in a note to clients this week.
The Office of the Superintendent of Bankruptcies releases monthly and quarterly reports on insolvencies, a term that encompasses both bankruptcies and proposals that can see consumers and businesses restructure their debts. Proposals account for a wide majority of insolvency filings.
Bankruptcy filings rose 8.2 per cent year-over-year to 9,520 in the second quarter of the year, according to the office. That marks an increase of 11.8 per cent from the first quarter.
Insolvency volumes plummeted at the onset of the COVID-19 pandemic but have steadily crept higher since.
St-Arnaud noted that the consumer insolvency rate — filings per 1,000 people — remains below pre-pandemic levels in Canada.
Insolvencies are on the rise in provinces with higher ratios of debt to disposable income, however. British Columbia, Alberta, Saskatchewan, Manitoba and Ontario have all seen total insolvencies rise above 2019 levels, according to Servus.
“Elevated household debt, stagnating purchasing power, and high interest rates have put pressure on households’ finances in recent years,” St-Arnaud said in his note.
“High energy costs in recent months and their impact on inflation and household purchasing power could increase household financial stress.”
Conservative MP Jasraj Hallan, his party’s national revenue critic, said in a statement Wednesday that the latest insolvency figures show Canadians are “running out of options to pay off their debt.”
Hallan blamed Prime Minister Mark Carney for the rising costs of fuel and groceries. Overall inflation cooled to 2.8 per cent in June as gas prices fell and food inflation eased, though regular price hikes at the grocery store in recent years have piled up on consumers.
“While Carney tries to sell the illusion that life is getting more affordable, Canadians experience the reality of higher prices at the checkout and weaker purchasing power under the Liberals,” Hallan said in a media release.
John Fragos, spokesperson for Finance Minister François-Philippe Champagne, said in a statement to The Canadian Press that the Liberal government and Canadians alike are responding “to an unprecedented global economic challenge that is driving up costs and creating uncertainty and stress.”
He pointed to government measures over the past year to temporarily boost payouts of the rebranded Canada Groceries and Essentials Benefit, cut the consumer carbon price and pause federal fuel excise taxes as proof that Ottawa’s affordability agenda is reducing costs for Canadians.
“The government’s priority has been and remains making everyday life more affordable and steeling Canada’s economy to global shocks,” Fragos said.
This report by The Canadian Press was first published Aug. 12, 2026.
By Craig Lord | Copyright 2026, The Canadian Press. All rights reserved.