The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) has shared that business insolvency filings have decreased but stayed elevated compared with the pre-pandemic figures, as supported by recent data from the Office of the Superintendent of Bankruptcy (OSB).
According to CAIRP’s media release, last May saw 391 business insolvencies, marking the eighth consecutive month of year-over-year decreases, a 16.5 percent decrease compared with April, and a 26.2 percent decrease compared with May 2024.
CAIRP noted that, over the 12 months ending last May 31, business insolvency filings declined by 13.3 percent, compared with the previous 12-month period.
“Although headline numbers show a decline, business insolvency levels remain elevated compared to pre-pandemic norms,” said André Bolduc, licensed insolvency trustee and CAIRP chair, in the media release.
“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,” Bolduc added.
According to CAIRP, the period from January to May saw 2,191 business insolvencies, 4.7 percent up compared with the pre-pandemic five-month average of 1,626 insolvencies, with the first five months of this year exceeding the pre-pandemic average.
Regarding sectors, CAIRP highlighted a decrease in business insolvency filings across almost all sectors last May compared with May 2024.
CAIRP noted that the following sectors experienced the biggest year-over-year drops in business insolvencies:
- construction, with 63 filings, decreasing by 29
- transportation and warehousing, with 22 fillings, declining by 21
- manufacturing, with 23 filings, going down by 16
CAIRP said the following sectors continued to face high operating costs, labour shortages, and low consumer demand and saw the highest number of business insolvencies:
- accommodation and food services, with 65 filings, representing 16.8 percent of all filings
- construction, with 63 filings, comprising 16.3 percent of total filings
CAIRP added that two lone sectors experienced an uptick in business insolvency filings year-over-year:
- agriculture, forestry, fishing and hunting, with nine filings, rising by four
- arts, entertainment, and recreation, with 10 filings, increasing by one
Consumer insolvencies
In its media release, CAIRP noted that recent OSB data revealed that consumer insolvency filings went up by 3.1 percent last May compared with the previous month.
CAIRP also shared the following statistics regarding consumer insolvencies:
- Last May saw 12,004 insolvencies, 1.6 percent down from May 2024, but five percent higher in the 12-month period ending May 31, 2025, compared with the 12-month period closing May 31, 2024
- In the first five months of this year, the number of filings per month exceeded the pre-pandemic monthly average of 10,634 filings (May 2016 to December 2019)
- This year has seen 57,875 filings so far, 7.6 up from the pre-pandemic five-month average of 53,784
CAIRP deemed this year’s number of consumer insolvency filings notably higher than pre-pandemic standards, even considering the short-term fluctuations.
“These figures indicate a new baseline of insolvency filings and financial distress in Canada,” Bolduc said in the media release. “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.”
CAIRP then discussed data pertinent to Canada’s different provinces. In May, Newfoundland and Labrador had the biggest year-over-year and month-over-month rises in consumer insolvencies – 16.6 percent and 10.6 percent, respectively. Meanwhile, New Brunswick had the second-highest year-over-year increase, with insolvencies going up 9.1 percent.
“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,” Bolduc said in the media release. “With smaller populations, each case carries more weight, and the ripple effects can be felt more broadly across communities.”
A national professional association representing 1,400 members and associates, CAIRP seeks to serve as the voice on insolvency matters across Canada.