Consumer insolvencies up 2.3% in 2025, hitting highest volume since 2009: CAIRP

Insolvencies up 2.3%

Photo: The Canadian Press

Credit cards shown on Oct. 6, 2022. THE CANADIAN PRESS/Andrew Vaughan

Consumer insolvencies in 2025 rose 2.3 per cent compared with 2024, according to data compiled by the Office of the Superintendent of Bankruptcy.

It says consumer insolvencies, which includes bankruptcies and proposals, where creditors agree to settle debts under conditions other than the existing terms, totalled 140,457 for the year, up from 137,295 in 2024.

The Canadian Association of Insolvency and Restructuring Professionals says it was the second-highest annual volume on record since the OSB’s tracking began in 1987 and the highest volume since 2009.

Wesley Cowan, a licensed insolvency trustee and vice-chair of CAIRP, says many households are still feeling the cumulative impact of years of high inflation, higher borrowing costs, and stretched budgets.

B.C. saw a 10.6 per cent year-over-year increase in consumer insolvencies, while Newfoundland and Labrador gained seven per cent. Prince Edward Island climbed 6.1 per cent.

Meanwhile, business insolvencies in 2025 fell 21.8 per cent to 4,840 compared with 6,188 in 2024.