“When people are trying to keep up with rising costs while carrying growing debt balances, they can appear to be managing financially until suddenly they are not,” says Cowan. “That often delays the point at which someone reaches out for help, and by then, their options may be more limited. Seeking advice from a professional early can help preserve more financial recovery options before the situation escalates.”
Among provinces, British Columbia posted the largest year-over-year increase in consumer insolvencies, climbing 16.2% to 4,234 filings. Prince Edward Island followed with a 15.3% rise to 166 filings, while Ontario saw a 14.7% increase to 13,913 filings.
Business insolvencies tell mixed story
Canadian businesses recorded 1,232 insolvencies in the first quarter, down 7.5% from a year earlier but up 9.8% from the previous quarter.
Despite the annual decline, business filings remained 27.6% above the average first-quarter level seen before the pandemic. Over the 12 months ended March 31, business insolvencies fell 14.1% from the preceding 12-month period.
“The increase in business insolvencies compared to last quarter is a reminder that financial pressure on Canadian companies remains significant,” says Craig Munro, Licensed Insolvency Trustee and Chair of CAIRP. “While filings remain below the elevated levels seen at this time last year, many businesses are still operating in an environment marked by high costs, tighter margins, and ongoing economic uncertainty.”