Canadian insolvency filings improved last year, but that progress is rolling back. Office of the Superintendent of Bankruptcy Canada (OSB) data shows insolvency filings climbed in May. Both consumer and business insolvencies are on the rise once again, and they’re both at historically elevated levels.
Canadian Insolvency Filings Hit 4th-Highest May On Record
Canadian total insolvency filings, including consumer and business filings for the month of May.
Source: OSB; Better Dwelling.
Insolvency filings are on the rise, already reversing last year’s improvements. The OSB received 12,536 filings in May, 1.1% more than last year but 1.5% lower than May 2024. This is a slight regression, but these levels were already elevated. Canada historically maintains low insolvency volumes, but 2026 saw the fourth-highest volume of filings in at least 39 years of data.
Consumer Insolvencies Climb, Remain At Staggering Levels
Canadian consumer insolvency filings for the month of May.
Source: OSB; Better Dwelling.
As always, consumer filings made up the lion’s share with 12,131 filings in May, up 1.1% from last year. Considering these make up 97% of the total filings, a typical share, it’s no surprise the consumer trend looks similar to the total. It also marks the fourth-most filings on record for May, though it’s much closer to 2024—just 0.5% lower. It’s a problem that looks a little more concerning when contrasted with a population that’s shrinking.
Canadian Business Insolvencies Rise, Silent Failures More Common
Canadian business insolvency filings for the month of May.
Source: OSB; Better Dwelling.
Business insolvencies are growing more aggressively with 405 filings in May, 3.6% higher than last year. This growth is 3x the total, and it’s the second-highest May filing in over a decade. However, business filings look lower than historical volumes, especially around the elevated levels in the 90s and early 2000s.
That may seem like businesses aren’t suffering from as much stress as consumers, but it stands in contrast with the business closure data that shows a rapidly shrinking landscape.
This implies more silent failures, where businesses wind down and liquidate assets without seeking formal debt relief. This serves as a good reminder that more insolvencies mean rising stress amongst borrowers, but fewer insolvencies just means fewer insolvencies—not necessarily less stress.
