Insolvencies in Canada Reach 17-Year High

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The number of Canadians filing for insolvency reached its highest level of any quarter since 2009 at the tail end of the Great Recession, according to the latest government insolvency data.

A total of 37,121 Canadians filed for insolvency in the first three months of 2026, compared with the prior peak of 40,589 in the third quarter of 2009, according to data from the Office of the Superintendent of Bankruptcy.

Of the insolvencies filed in the first quarter this year, 7,576 resulted in bankruptcies, while 29,545 ended in proposals, the data shows. A proposal is defined by the agency as: “An offer to creditors to settle debts under conditions other than the existing terms. A proposal is a formal agreement under the Bankruptcy and Insolvency Act.”

The quarter also saw 1,232 insolvencies filed by businesses, corporations, and “individual businesses”—defined as “An individual who has incurred 50 percent or more of total liabilities as a result of operating a business.”

However, Canada’s insolvency rate was lower in the first quarter of 2026 than in 2009 when adjusted for population, according to calculations based on Statistics Canada population estimates and federal insolvency data.

The global economy experienced a recession from 2007 to 2009, and while Canada was not spared, its recession was milder and shorter than those of several other peer nations.

In the third quarter of 2009, there were 40,589 insolvency filings against a population of 33.9 million translated to a rate of roughly 0.120 percent, or about 120 filings per 100,000 people. In the first quarter of 2026, there were 37,121 insolvency filings against a population of 41.5 million, resulting in a lower rate of about 0.090 percent, or 90 filings per 100,000 people.

Ontario saw the highest number of insolvency cases in Q1 2026 at 14,281 cases—accounting for 37 percent of the total—while British Columbia saw the highest increase (15.4 percent) in the rate of insolvency from the same period last year.

Prince Edward Island was the province with the fewest insolvency cases at 167 filings total, while the territories each had fewer than 20 filings in the quarter. Nova Scotia and Saskatchewan each saw a decrease in filings, with a year-on-year change of minus 0.5 percent and minus 1.3 percent respectively.

A recent survey found Canadians are continuing to adjust their spending habits as affordability remains a leading concern, with many respondents reporting more cautious purchasing behaviour.