Canadian insolvencies remain elevated for both individuals and businesses
The number of Canadians whose finances are broken to the point of insolvency remains elevated compared to a year ago.
The latest stats from the Office of the Superintendent of Bankruptcy (OSB) reveal that consumer insolvencies rose by 3.1% in May 2025 compared to April, with 12,004 filings recorded. This is slightly below the May 2024 figure (-1.6%), but filings over the past 12 months are 5% higher than the same period a year earlier.
The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) says that filings remain well above pre-pandemic levels with the monthly average so far in 2025 consistently exceeding the pre-pandemic norm of 10,634.
In total, 57,875 Canadians filed for insolvency in the first five months of the year, 7.6% higher than the average during the same stretch pre-2020.
“This points to a new baseline of financial distress,” says André Bolduc, Licensed Insolvency Trustee and Chair of CAIRP. He notes that while rate cuts have eased pressure slightly, many Canadians are still struggling with high living costs, wage stagnation, and debt accumulated during the high-interest-rate period.
Regionally, financial stress is hitting smaller provinces harder.
Newfoundland and Labrador posted the highest increases in consumer filings, up 16.6% year-over-year and 10.6% from April, while New Brunswick followed with a 9.1% year-over-year rise.
“In provinces with smaller populations, each insolvency filing represents a greater signal of strain,” Bolduc explains. “The ripple effects are more deeply felt in communities. It's critical that people know they’re not alone—there is professional, judgment-free help available.”
On the business side, insolvencies declined by 16.5% in May from April, with 391 filings.
Compared to May 2024, filings are down over 26%, but business insolvencies are still elevated. May’s numbers are nearly 30% above the pre-pandemic monthly average, and so far this year, 2,191 businesses have filed, 34.7% above the pre-2020 norm.
“Business insolvency levels may be lower month-to-month, but we’re not out of the woods,” says Bolduc. “Inflation, unstable demand, and sector-specific challenges are keeping pressure on.”
Sectors like construction and food services remain the most affected, while only agriculture and arts saw modest increases in filings. Despite improvements, the path to full recovery remains uneven.
