Nearly 400 consumer insolvencies were filed every day in Canada during the latest 12-month reporting period, new figures reveal, says Harris & Partners.
According to the Office of the Superintendent of Bankruptcy, 140,669 consumer insolvencies were recorded during the 12 months ending January 31, 2026, said the company, adding this is equivalent to abour 385 filings every day and represents a 2.2% increase compared with the previous 12-month period.
Consumer bankruptcies increased by 4.6%, rising from 29,068 to 30,417, while consumer proposals increased by 1.5%, from 108,635 to 110,252. The figures also show consumer filings accounted for 96.7% of all insolvencies recorded during the period, it noted.
The findings come alongside separate research from the firm, which provides a wider indication of the financial pressures facing households.
In a survey of 1,731 respondents:
- 36.9% said they had skipped essential purchases because of financial pressure
- 33.1% had used credit to pay for basic necessities
- 58% reported feeling financially burned out
- 76.3% said their financial situation had affected their mental health
The survey respondents are separate from those included in the official insolvency statistics and the findings do not establish what caused the increase in filings, explained Harris & Partners.
Bankruptcies rising faster than consumer proposals
A consumer proposal allows an individual to make a formal offer to creditors to settle their debts under different terms, while bankruptcy is a legal process through which an individual may be released from some or all of their debts. Consumer proposals continued to account for the majority of filings, representing 78.4% of consumer insolvencies during the latest 12-month period. However, their share fell slightly from 78.9% during the previous reporting period, while the number of consumer bankruptcies grew more quickly, it said.
“Nearly 400 consumer insolvency filings every day is a significant figure, but each filing represents a person or household that may have been struggling for months or even years before reaching that point. Financial difficulty does not usually begin with an insolvency filing. It can begin with relying on credit for groceries, delaying bills or cutting back on essentials simply to keep up with existing payments,” said Joshua Harris of Harris & Partners.
“Our survey found that more than one-third of respondents had skipped essentials, while one-third had used credit to cover basic necessities. Although this research is separate from the government figures, it illustrates the kinds of pressures that can build before someone formally seeks debt relief. The rise in bankruptcies is particularly notable. A consumer proposal may allow someone to repay an agreed portion of what they owe, but it will not be suitable or affordable in every situation.
“People often feel that they need to wait until they have missed several payments or exhausted every available source of credit before discussing their options. Seeking information earlier can provide a clearer picture of what formal and informal options may be available.”
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