There were 424 business insolvencies filings in Canada last January, 30 filings more than in the month preceding, according to recent statistics from the federal Office of the Superintendent of Bankruptcy (OSB).
Business insolvencies filed in Canada last January, according to the OSB statistics:
- went up by 7.6 percent from December 2024
- increased by 45.2 percent, compared with January 2019 before the COVID-19 pandemic
- rose by 11.7 percent in the 12-month period ending Jan. 31, 2025, compared with the 12-month period ending Jan. 31, 2024
The OSB statistics also showed the sectors with the biggest growth in the number of insolvency filings in January, compared with the previous month. These were:
- accommodation and food services, which accounted for the most substantial share of insolvencies with 59 filings, 17 more than in December
- professional, scientific, and technical services with 41 filings, 13 higher than in December
- arts, entertainment, and recreation with 11 filings, nine more than in December
Given that Canada is presently facing economic uncertainty amid the looming issues relating to US tariffs, Canadians already under financial strain may struggle even harder to deal with their debt-related obligations, said a media release from the Canadian Association of Insolvency and Restructuring Professionals (CAIRP).
“As financial challenges persist, it’s crucial for Canadians to understand their debt-relief options, and know who to speak with for trusted, knowledgeable support,” said André Bolduc, licensed insolvency trustee and the CAIRP’s chairman, in the media release.
Consumer insolvencies
With an average of around 361 filings daily, there were 11,196 consumer insolvencies filed in Canada this January, 1,904 more than in the previous month, according to the OSB statistics.
The OSB statistics revealed that consumer insolvency filings in Canada last January:
- went up by 20.5 percent from December 2024
- increased by 3.8 percent from January 2024
- rose by 12.3 percent, compared with January 2019 prior to the pandemic
- grew by 9.9 percent in the 12-month period ending Jan. 31, 2025, compared with the 12-month period ending Jan. 31, 2024
The CAIRP stressed that the recent increase in consumer insolvency filings showed the financial challenges faced by today’s Canadians, including the high cost of living and rising household debt. The current economic environment highlights the importance of debt literacy, the CAIRP added.
“Higher costs for goods and services, combined with existing financial pressures, could push more individuals towards needing debt-relief solutions,” Bolduc said in the media release.
“Many indebted Canadians are hardworking individuals who have encountered financial setbacks due to circumstances beyond their control, and taking action can provide the stability and peace of mind needed to rebuild their financial future,” Bolduc also said in the media release.
Among consumer insolvencies filed in January, New Brunswick saw a 9.8-percent year-over-year growth, the largest among the provinces, the OSB data revealed. Quebec followed with a 9.2-percent growth.
“Debt-relief options can include both insolvency and non-insolvency solutions, such as negotiating with creditors, debt consolidation, consumer proposals or bankruptcy,” Bolduc said in the media release.
Of the January filings, consumer proposals made up 78.9 percent and bankruptcies 21.1 percent, the OSB statistics revealed. Bolduc distinguished the two debt relief options in the CAIRP’s media release.
“Unlike bankruptcy, a consumer proposal often offers a more flexible repayment plan of up to 60 months instead of nine to 36 months, no ongoing income reporting, and removes uncertainty and the risk of payment increases,” Bolduc said in the media release.
“Additionally, those who have previously filed a bankruptcy often prefer to avoid going through the bankruptcy process again, particularly given the uncertainty of what the terms of their discharge from another bankruptcy might be,” Bolduc added in the CAIRP’s media release.
The CAIRP is a national professional association with 1,400 members and associates. The CAIRP’s members have obtained the chartered insolvency and restructuring professional designation. Most members are licensed insolvency trustees.
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