"Some 37,121 Canadians filed for insolvency in the first quarter of 2026 the highest number of consumer insolvencies since 2009, when North America was reeling from the financial crisis. Compared to the same time period last year, insolvencies are up 8.5 per cent. However, the population now is higher than it was in 2009. Insolvency trustee Doug Hoyes says when that population growth is factored in, the rates of insolvency are much lower than 2009 levels."
"“Our expenses for the most part are rising a lot faster than what our incomes are,” Hoyes said. “How do you bridge that gap? Well, you do it with debt.” WATCH | Consumer insolvencies are soaring: The number of consumer insolvencies where someone can not meet their debt load have reached the highest quarterly level since the 2009 financial crisis largely because of a struggling job market and the rising cost of living."
"Hoyes says most Canadians can get through one or two tough months, but when multiple factors, including trade wars and actual wars, drive up costs for a longer stretch of time, that's when their debts start to pile up. “A lot of people are now reaching the breaking point, they just cannot do it,” Hoyes said."
"British Columbia saw the biggest spike in insolvencies, with a 16.2 per cent increase compared to the same period in 2025. Prince Edward Island and Ontario weren't far behind, with 15.3 and 14.7 per cent increases respectively. Among all insolvencies across Canada, bankruptcies made up 20 per cent of the first quarter filings, whil"
In the first quarter of 2026, 37,121 Canadians filed for insolvency, the highest consumer insolvency total since 2009. The number rose 8.5% compared with the same period in 2025, while Canada’s population is larger than in 2009, making the per-capita rate lower than then. Insolvency trustee Doug Hoyes said expenses are rising faster than incomes, forcing people to bridge gaps with debt. He noted more calls to his office as food and gas costs squeeze households. Analysts warned conditions may not improve soon, especially if prolonged cost pressures continue due to broader economic disruptions. Insolvency increases were largest in British Columbia, followed by Prince Edward Island and Ontario.
#consumer-insolvency #cost-of-living #household-debt #canada-insolvency-statistics #regional-insolvency-trends
Read at www.cbc.ca
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