The latest data from the Office of the Superintendent of Bankruptcy (OSB) shows consumer insolvencies rose 4.8% year-over-year in the third quarter of 2025, reaching 36,256 filings. The Canadian Association of Insolvency and Restructuring Professionals (CAIRP), the national voice on insolvency matters in Canada, says this is the third-highest quarterly volume since the OSB’s tracking began in 1987, and the highest quarterly volume since 2009 during the global financial crisis.
Consumer insolvencies also increased 3.3% in the third quarter compared to the previous quarter, it said.
“Behind these numbers are Canadians who continue to struggle to balance daily expenses with mounting debt obligations. For many, consumer insolvency filings are the result of financial pressures that have been building quietly for some time,” said Wesley Cowan, Licensed Insolvency Trustee and Vice Chair of CAIRP.
“People often wait until they feel completely overwhelmed before seeking help. But opening up about debt earlier — even just having that first conversation — can make a world of difference. Financial Literacy Month is about encouraging those conversations and showing Canadians that help is available. Licensed Insolvency Trustees offer a trusted, confidential place to talk through your options and find a way forward.”
Against the backdrop of continued household strain, the third-quarter volume of consumer insolvencies remains markedly above pre-pandemic levels, sitting 17.1% higher than the pre-pandemic five-year average for the third quarter and 29.4% above the recent four-year average. In the last 12-month period ending September 30, 2025, there were 139,335 consumer insolvencies filed – slightly more (+2.9%) than the 12-month period ending September 30, 2024. Yet even these numbers likely understate the extent of financial distress, as the fear of judgment and stigma continues to keep many Canadians struggling in silence, explained CAIRP.
The organization said business insolvencies fell in the third quarter of 2025, with 1,108 filings — a decrease of 15.5% from the same period last year and 13.3% from the previous quarter. Over the 12-month period ending September 30, 2025, there were 5,050 business insolvencies filed, down 20.8 percent compared to the 12-month period ending September 30, 2024.
More from Retail Insider:
