A record number of Canadians have filed for bankruptcy this year, and the pace is accelerating as the economy slows and debt loads increase.
At the end of March, more than 37,121 Canadians filed for bankruptcy, the highest quarterly total since 2009, according to the Office of the Superintendent of Bankruptcy (OSB).
In all, 8.5% more Canadians filed for bankruptcy in this year’s first quarter compared with the same quarter of 2025.
The bankruptcy filings come as Canadian households struggle to cover basic living costs amid rising inflation, a slowing economy, and economic uncertainty.
According to the OSB, almost 80% of the bankruptcy filings were from consumers, while the remaining 20% involved businesses.
Credit bureau Equifax said the average non-mortgage debt tied to a bankruptcy filing reached $43,300 in Q1. For homeowners, their average non-mortgage debt reached $82,400.
British Columbia’s consumer bankruptcies increased 16% to 4,234 filings. Ontario's consumer bankruptcies rose 25% year-over-year in Q1 of this year.
Canada’s economy entered a technical recession this year following two consecutive quarters of negative growth or an economic contraction.
Economists say that Canada’s economy has been hurt by U.S. tariffs and geopolitical turmoil.
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