Canadian insolvencies jump 9.4% to highest level in nearly a year
Canadian insolvencies jumped in June, reaching their highest level since July 2025, according to an analysis by Servus Credit Union.
Total insolvencies rose 9.4% from May on a seasonally adjusted basis and were 11.5% higher than a year earlier, aaccording to Servus economists Charles St-Arnaud and Oriane Kacoutie.
The year-over-year increase included an 11.3% rise in proposals and a 12.2% increase in bankruptcies. Proposals, which involve renegotiating repayment terms with creditors, accounted for roughly 76% of all insolvencies.
Total insolvencies were 12.5% above their 2019 level. Proposals were 44.7% higher than in 2019, while bankruptcies remained 33.5% lower.
Provincial trends diverge
Insolvencies increased from a year earlier in nine of the 10 provinces. The largest gains were recorded in Prince Edward Island, at 50%, followed by Saskatchewan at 28.1%, New Brunswick at 27.1%, British Columbia at 17.2% and Ontario at 14%.
Compared with 2019, insolvency volumes were 56% higher in B.C., 37.1% higher in Manitoba, 33.8% higher in Ontario and 21% higher in Saskatchewan.
Servus noted that B.C., Ontario, Manitoba, Alberta and Saskatchewan all have above-average household debt-to-disposable-income ratios.
The national consumer insolvency rate, measured as filings per 1,000 people aged 15 and older, rose to 0.367 in June but remained slightly below its 2019 level.
The economists said job losses remain the principal risk to the outlook. They said the labour market’s recent performance provides little cause for concern at this point, but warned that deteriorating employment conditions and declining incomes would likely lead to higher insolvencies.
Business insolvencies also rose 7.6% in June on a seasonally adjusted basis and were 5.5% higher than a year earlier. They accounted for less than 5% of total insolvencies.
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Charles St-Arnaud consumer proposal insolvencies Oriane Kacoutie servus credit union
Last modified: August 10, 2026
