Two provinces lead the way in insolvency filings
More than 35,000 Canadians filed for consumer insolvency in the second quarter of 2025, according to data released by the Office of the Superintendent of Bankruptcy. The total of 35,114 filings marks a 2.6% increase over the previous quarter and remains relatively stable compared to Q2 2024, with a marginal 0.1% rise year over year.
The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) said the data underscores the sustained financial pressure many Canadians are facing. “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,” said André Bolduc, licensed insolvency trustee and chair of CAIRP.
The quarterly figure is nearly 5% above the pre-pandemic average for the same period. Over the 12 months ending June 30, 2025, consumer insolvencies rose 4.9% compared with the previous year.
Ontario and Quebec accounted for a combined 61.7% of all consumer filings in Q2. Ontario had the highest number at 13,292, followed by Quebec with 8,372. However, the largest year-over-year increase was recorded in Newfoundland and Labrador at 20.2%. British Columbia and Manitoba also saw notable increases at 7.0% and 5.3%, respectively.
Bolduc emphasized that insolvency can be a necessary step toward financial recovery. “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,” he said.
Business filings decline but remain elevated
Business insolvencies declined by 4.1% compared to Q1 2025, with 1,278 filings in total. Year-over-year, filings dropped by 17.1%, but volumes remain 33.4% higher than the pre-pandemic second-quarter average.
“This could be a brief moment of calm, but it doesn’t mean the storm has passed,” Bolduc said. He cited global trade uncertainty and high input costs as ongoing concerns.
The construction sector saw the highest volume of business insolvencies at 210 filings, followed by accommodation and food services (161), and retail trade (156). Sectors like agriculture also saw modest increases, with 31 filings.
Bolduc urged business owners facing financial stress to consult with a Licensed Insolvency Trustee early. “They can help assess financial viability, explore restructuring, and negotiate with creditors to avoid bankruptcy wherever possible,” he said.
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