Consumer filings remain above pre-pandemic levels as financial pressures mount
Canada saw a slight rise in consumer insolvencies in the second quarter of 2025, while business filings edged downward, according to new data from the Office of the Superintendent of Bankruptcy.
A total of 35,114 Canadians filed for consumer insolvency between April and June, up 2.6% from the previous quarter and virtually unchanged year-over-year (+0.1%). While the increase isn’t dramatic, it keeps filings 4.9% above pre-pandemic norms.
"The rising cost of essentials, growing mortgage payments, and ongoing increases in everyday household expenses are compounding the pressure on Canadians already managing tight budgets or struggling with existing debt,” says André Bolduc, licensed insolvency trustee and chair of CAIRP.
Over the 12 months ending June 30, consumer filings were up 4.9% compared to the prior year with Ontario (13,292) and Quebec (8,372) accounting for nearly two-thirds of all filings in the quarter.
But the sharpest increases came from smaller provinces as Newfoundland and Labrador led the country with a 20.2% year-over-year jump in filings, while British Columbia and Manitoba recorded increases of 7.0% and 5.3% respectively.
"For many in lower-income brackets, especially those facing stagnant or declining wages as the cost of essentials rises, the financial burden can be especially severe,” Bolduc adds. “Licensed Insolvency Trustees should be the first place to seek help, as they are the only professionals licensed and regulated by the federal government to provide debt relief solutions."
On the business side, insolvency filings declined by 4.1% from Q1 and dropped 17.1% year-over-year. Still, at 1,278 filings for the quarter, the figure remains 33.4% higher than pre-pandemic Q2 averages.
"This could be a brief moment of calm, but it doesn’t mean the storm has passed,” warns Bolduc. While the construction sector recorded the most insolvencies (210), filings also rose in sectors like agriculture and retail—indicators that financial strain is far from resolved.
