Consumer insolvencies—which includes bankruptcies and proposals—rose 2.3 per cent in 2025 to 140,457 filings, while business insolvencies fell 21.8 per cent to 4,840 from 6,188 in 2024, according to data from the Office of the Superintendent of Bankruptcy. (The Logic)

Talking point: Consumer insolvencies rose on the back of increases in both bankruptcies and proposals, with bankruptcies rising 4.3 per cent since 2024. “Bankruptcy is the final step,” said Maria Solovieva, an economist at TD Bank, noting that lenders and borrowers often prefer to restructure debt rather than enter liquidation proceedings. She added that government programs—including targeted support for sectors like manufacturing and agriculture—helped businesses retain workers, while a relatively contained unemployment rate in 2025 cushioned households. However, Solovieva cautioned that the impact of trade-related stress on bankruptcies may be delayed, adding that the upcoming USMCA negotiations could be the “biggest potential downside risk for Canada.”

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