Canadian consumer insolvencies have reached their highest level since the first quarter of 2009, according to new data from the Office of the Superintendent of Bankruptcy.
In the first three months of 2026, 37,121 Canadians filed for insolvency - roughly 17 filings per hour. That marks an 8.5% increase over the same period in 2025, and a 6.5% rise compared to the final quarter of last year, according to the Canadian Association of Insolvency and Restructuring Professionals.
Business insolvencies also remain elevated, with 1,232 business filings between January and March. While that’s a 7.5% drop year-over-year, it’s a 9.8% increase from the last quarter of 2025.
This comes as total Canadian household debt hit $2.6 trillion in the final quarter of 2025, driven largely by rising mortgage balances, per a recent TransUnion report. The mortgage delinquency rate rose to 0.24%, the highest level since late 2021, according to the Canada Mortgage and Housing Corporation.
“The concern is that many households are entering this next period of economic uncertainty already carrying debt they can no longer comfortably manage,” said Wesley Cowan, a licensed insolvency trustee and vice chair of CAIRP. Cowan warned that a single life event - a job loss, rent hike, or unexpected expense - can push financially stressed Canadians past a tipping point from which recovery is difficult.