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TORONTO – November 12, 2025 – 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.

“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,” says Wesley Cowan, Licensed Insolvency Trustee and Vice Chair of CAIRP.”

“People often wait until they feel completely overwhelmed before seeking help,” Cowan explains. “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.

“Financial challenges can affect anyone, regardless of income or background,” says Craig Munro, Licensed Insolvency Trustee and Chair of CAIRP. “The key is understanding your situation and knowing where to turn for help. During Financial Literacy Month, we want to highlight that Licensed Insolvency Trustees are federally regulated professionals who can explain every debt relief option, including budgeting support, debt consolidation, consumer proposals and bankruptcy, so Canadians can make informed and confident decisions about their financial future.”

At a regional level, Ontario and Quebec recorded the highest number of consumer insolvency filings among all provinces, with 13,893 and 8,898 filings, respectively. The most significant year-over-year increase was in British Columbia, which experienced a 19.4% rise in filings in the third quarter of 2025. Prince Edward Island (11.9%) and Newfoundland and Labrador (8.3%) also reported notable increases.

Across the country, Canadians silently struggling with debt are weighed down not only by what they owe, but also in some cases, by shame and the perceived stigma associated with asking for help. Their silent suffering often leads to isolation and delays solutions that could improve their financial and mental well-being. This November marks the 15th anniversary of Financial Literacy Month (FLM), led by the Financial Consumer Agency of Canada (FCAC). The 2025 theme, “Talk Money,” is a national call to action to break down the stigma surrounding debt and encourage open, judgment-free conversations about money.

Canadians can find reliable tools and information about options for dealing with financial difficulties by visiting the OSB’s Debt Solutions Portal at canada.ca/debt-solutions, and CAIRP’s Navigating Financial Distress page at cairp.ca/financial-distress.

Meanwhile, 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.

“The drop in business insolvencies doesn’t necessarily mean businesses are in better shape,” explains Munro. “Some owners may be delaying filings by juggling debt or negotiating informally with creditors. Others simply wind down operations without entering the insolvency system, which means their financial challenges aren’t reflected in the official numbers. Stigma can also play a role. Business owners facing financial difficulties can reach out to a Licensed Insolvency Trustee early to understand their options and prevent the situation from escalating. They are uniquely qualified to help assess the business’s circumstances and identify the most viable path forward.”

ABOUT CAIRP

The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) is the national professional association representing 1,400 members and associates. CAIRP members have earned the CIRP designation, and most are licensed insolvency trustees (LIT) providing insolvency and restructuring services to consumers and businesses who experience financial challenges. CAIRP is a national voice on insolvency matters throughout Canada.

For more information visit: www.CAIRP.ca

CONTACT

Angela Joyce
Media Relations
Tel: 403-681-9286
aj@whiterabbitpr.com