Canada Insolvencies Jump 11.5% as Filings Approach Levels Not Seen Since the Financial Crisis

Financial pressure on Canadians continues to rise.

The Office of the Superintendent of Bankruptcy reported that 13,254 insolvency filings were made across Canada in June 2026, up 5.7% from May and 11.5% from the same month a year earlier.

More Than 13,000 Insolvency Filings in June

In Canada, the term “insolvency” does not refer only to bankruptcy. It also includes consumer and business proposals, where debts are formally restructured or renegotiated. Proposals now make up the majority of filings.

Canada recorded 13,254 insolvencies in June, an increase of 5.7% from May and 11.5% from a year earlier.

Consumers continued to account for the vast majority of filings and were the primary driver of the annual increase. Business insolvencies also rose compared with the same period last year.

In the second quarter of 2026, bankruptcy filings alone reached 9,520 nationwide, up 8.2% year over year and 11.8% from the first quarter.

Canadian insolvency filings dropped sharply at the beginning of the pandemic in 2020, but have been rising steadily since then.

Higher-Debt Provinces Are Seeing More Pressure

On a population-adjusted basis, Canada’s consumer insolvency rate per 1,000 people remains below pre-pandemic levels.

However, the situation varies significantly by province.

One factor these provinces have in common is relatively high household debt compared with disposable income.

St-Arnaud noted that elevated household debt, stagnant purchasing power and higher interest rates have continued to put pressure on household finances in recent years. Rising energy costs and their impact on inflation and purchasing power could add further strain.

In practical terms, when households are already carrying large debt balances, high mortgage payments, credit costs and everyday living expenses can leave progressively less cash available for debt repayment.

Household Debt Pressure Has Continued to Build Since the Pandemic

The most important part of the data is not simply the 11.5% year-over-year increase in one month. Canadian insolvencies have been climbing for several years after falling sharply at the start of the pandemic.

At the same time, Canadian consumers have had to absorb significant increases in food, housing and other living costs.

Although overall Canadian inflation fell to 2.8% in June, with lower gasoline prices and some moderation in food inflation, the cumulative price increases of recent years do not disappear simply because the inflation rate slows.

With June insolvency filings once again rising 11.5% year over year and moving closer to levels seen around the Global Financial Crisis, more Canadian consumers and businesses are turning to bankruptcy or debt restructuring to manage their financial obligations.