CAIRP: May 2025 Canadian Insolvency Statistics
TORONTO – July 9, 2025 – The latest data from the Office of the Superintendent of Bankruptcy (OSB) show consumer insolvencies rose modestly in May 2025, up 3.1% compared to April. There were 12,004 filings in May—1.6% fewer than May 2024, but 5.0% higher in the 12-month period ending May 31, 2025, compared to the 12-month period ending May 31, 2024.
The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) notes that even with short-term fluctuations, consumer insolvency volumes in 2025 remain notably higher than pre-pandemic norms. In the first five months of 2025, the number of insolvencies filed each month exceeded the pre-pandemic monthly average of 10,634 filings (May 2016 to December 2019). Year to date, there have been 57,875 filings—7.6% higher than the pre-pandemic 5-month average of 53,784.
“These figures indicate a new baseline of insolvency filings and financial distress in Canada,” says André Bolduc, Licensed Insolvency Trustee and Chair of Canadian Association of Insolvency and Restructuring Professionals (CAIRP), the national voice on insolvency matters in Canada. “Although recent interest rate cuts and subsequent pauses may have offered some initial relief, many households are still grappling with persistent high living costs, stagnant incomes, and debt accumulated during a period of steep borrowing rates.”
Regional Pressures Still Evident
Newfoundland and Labrador stood out once again May, posting both the largest year-over-year (+16.6%) and month-over-month (+10.6%) increases in consumer insolvencies, compared to the rest of the provinces. This continues a trend seen in April, when the province also saw the highest year-over-year increase among all provinces (+17.4%). New Brunswick experienced the second-highest year-over-year increase in May, where consumer insolvencies rose 9.1%.
“In smaller provinces like Newfoundland and Labrador, even modest increases in insolvency filings can be a strong indicator of deepening financial strain at the household level. With smaller populations, each case carries more weight, and the ripple effects can be felt more broadly across communities,” explains Bolduc. “It’s critical for individuals facing financial challenges to know they’re not alone—and to have access to trustworthy guidance and support systems that can help them regain control and find a path forward.”
For individuals facing persistent financial strain, speaking with a Licensed Insolvency Trustee can be a crucial first step. Whether an individual feels overwhelmed by debt or simply unsure of their options, Licensed Insolvency Trustees can help by offering free initial consultations with no pressure or obligation, clearly explaining all debt-relief options, and helping individuals act early—before financial challenges escalate further. With a focus on education and support, Licensed Insolvency Trustees help individuals understand their options, reduce stress, and make informed decisions about their financial future.
Business Insolvencies Decline but Remain Elevated Over Pre-Pandemic Norms
Business insolvencies declined 16.5% in May compared to April, with 391 filings. Year-over-year, filings were down 26.2% compared to May 2024—marking the eighth consecutive month of year-over-year declines. Over the 12-month period ending May 31, 2025, business insolvencies were down 13.3% compared to the previous 12-month period.
Despite these declines, insolvency volumes remain significantly above pre-pandemic levels. The pre-pandemic monthly average (May 2016 to December 2019) was 303. May’s total of 391 filings is roughly 29% above that baseline. All five months of 2025 have exceeded the pre-pandemic average—and business insolvency levels have consistently trended higher since late 2022.
From January to May 2025, there were 2,191 business insolvencies filed—34.7% higher than the pre-pandemic five-month average of 1,626.
“Although headline numbers show a decline, business insolvency levels remain elevated compared to pre-pandemic norms,” says Bolduc. “This ongoing trend reflects the lasting impact of economic disruptions, inflationary pressures, and evolving uncertainties for Canadian businesses that continue to challenge business stability across multiple sectors.”
Sector Data Reflects Ongoing Economic Pressures
Insolvency volumes declined across nearly all sectors in May 2025 compared to the same month last year. The construction sector saw the largest year-over-year drop (63 filings, -29), followed by transportation and warehousing (22 fillings, -21) and manufacturing (23 filings, -16).
Despite the declines, accommodation and food services (65 filings) and construction (63 filings) remained the sectors with the highest number of insolvencies, accounting for 16.8% and 16.3% of total filings, respectively. These sectors continue to face pressures from high operating costs, labour shortages, and reduced consumer demand.
Only two sectors experienced an increase in insolvency filings year-over-year: agriculture, forestry, fishing and hunting (9 filings, +4) and arts, entertainment and recreation (10 filings, +1).
Business owners feeling overwhelmed by debt should consult a Licensed Insolvency Trustee to understand the relief and restructuring options available. Most Licensed Insolvency Trustees offer free initial consultations with no pressure or obligation. To find a government-regulated Licensed Insolvency Trustee, visit: www.cairp.ca/find-a-lit.html
ABOUT CAIRP
The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) is the national professional association representing 1,400 members and associates. CAIRP members have earned the CIRP designation, and most are licensed insolvency trustees (LIT) providing insolvency and restructuring services to consumers and businesses who experience financial challenges. CAIRP is a national voice on insolvency matters throughout Canada.
For more information visit: www.CAIRP.ca
CONTACT
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Angela Joyce
Media Relations
Tel: 403-681-9286
aj@whiterabbitpr.com