The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) has shared that 2025 recorded 4,840 total business insolvency filings, down 21.8 percent from 2024, but 31.5 percent above the pre-pandemic average from 2016–19.
In a media release, CAIRP shared its analysis of data from the Office of the Superintendent of Bankruptcy (OSB). CAIRP highlighted that business insolvencies increased by 1.3 percent in the fourth quarter of 2025, 15.8 percent lower compared with the fourth quarter of 2024.
“Business insolvencies have come down in 2025, but that doesn’t mean the operating environment has suddenly become easy,” said Craig Munro, licensed insolvency trustee and CAIRP chair, in the media release. “Many businesses are still managing higher costs, tighter margins, and uneven demand, which continues to test their resilience.”
According to CAIRP, businesses have responded to current challenges by holding back on expanding, investing, and hiring.
“Supply chain volatility and higher financing costs continue to weigh on many Canadian businesses, and ongoing uncertainty around cross-border trade and export demand remains a headwind, particularly for companies that rely heavily on international markets,” Munro said.
“Larger businesses are often better positioned to ride out these shifts, while smaller businesses are typically the first to feel these pressures, making it harder for them to weather unexpected shocks or prolonged periods of weaker demand,” Munro added.
CAIRP noted that economic uncertainty relating to possible trade disruptions, fluctuating input costs, and shifting consumer behaviour could keep presenting risks for some sectors. Last year, only three sectors reported a rise in business insolvencies:
- agriculture, forestry, fishing, and hunting, with 97 filings, up by two
- mining, quarrying, and oil and gas extraction, with 38 filings, up by six
- utilities, with 14 filings, up by one
Meanwhile, the following sectors saw the most significant decrease in business insolvencies:
- accommodation and food services, with 654 filings, down by 228
- transportation and warehousing, with 373 filings, down by 163
- construction, with 742 filings, down by 144
CAIRP added that construction comprised 15.5 percent of last year’s insolvencies, the most significant among sectors, followed by accommodation and food services at 13.7 percent.
Consumer insolvencies
CAIRP highlighted that consumer insolvencies remained historically high in 2025, even though the rate of growth slowed in comparison with the sharp rise in 2024. CAIRP said this reflected that many Canadians faced ongoing financial strain amid elevated living costs, increasing debt burdens, and continuing economic uncertainty.
For 2025, the OSB recorded 140,457 consumer insolvency filings, a 2.3 percent increase from 2024 and the second-highest annual volume since the OSB started tracking in 1987, as well as the highest since 2009. The OSB tracked a rough average of 385 consumer insolvencies daily, around 10 more per day than in 2024.
“The modest increase in consumer insolvencies in 2025 suggests that financial pressure remains widespread, even as some economic indicators have begun to stabilize,” said Wesley Cowan, licensed insolvency trustee and CAIRP vice chair. “Many households are still feeling the cumulative impact of years of high inflation, higher borrowing costs, and stretched budgets.”
CAIRP noted that last year’s fourth quarter saw consumer insolvencies drop by 3.8 percent from the third quarter of 2025, 3.3 percent higher compared with the fourth quarter of 2024.
CAIRP stressed that total consumer debt kept rising, with Equifax Canada reporting $2.62 trillion in total consumer debt in the third quarter of 2025, up 3.4 percent year-over-year, and $22,321 in average non-mortgage debt per consumer, up $511 year-over-year.
“Even as inflation has cooled from its peak, everyday expenses remain significantly higher than they were just a few years ago,” Cowan said in CAIRP’s media release. “For homeowners renewing mortgages at higher rates, the impact on monthly budgets can be substantial, leaving less room for savings and debt repayment.”
According to CAIRP, with 15,331 filings in 2025, British Columbia saw a 10.6 percent year-over-year increase in consumer insolvencies compared with 2024, the most considerable rise among Canada’s provinces. Next were Newfoundland and Labrador, which saw a seven percent increase with 2,395 filings, and Prince Edward Island, which saw a 6.1 percent increase with 593 filings.