“While inflation is easing, this simply means that prices aren’t climbing as quickly as before,” said André Bolduc, Licensed Insolvency Trustee and chair of CAIRP. “And at the end of the day, everyday essentials like groceries still cost more than they did in the past, leaving many Canadian households grappling to manage their budgets.”
September’s OSB figures show that consumer filings were up almost 9% year-over-year and for the 12 month period ended September 30, 2024, filings were up more than 15%. However, month-over-month filings were up less than 1%.
“We are seeing some short-term stabilization of consumer insolvencies, likely due in part to this year’s interest rate cuts and slowing inflation. However, a longer-term financial strategy will be critical for vulnerable individuals,” added Bolduc. “Many homeowners with mortgages up for renewal in 2025 may still face challenges, as a significant proportion will be renewing at higher rates. Additionally, those who accumulated significant debt during the period of high interest rates may still face a heightened risk of insolvency as they struggle to manage their growing financial burdens.”
Ontario led the year-over-year increases in consumer insolvencies in the third quarter of 2024 with a total of 13,140 filings, up 20%. Alberta followed with a 14% increase, bringing the total number of filings in the province to 4,886, while Quebec experienced a 12% rise, reaching 8,511 fillings.
Business insolvencies
Canadian businesses also continue to find their finances challenging and 1,312 of them filed for insolvency in the third quarter of this year, the third highest number since the Great Recession of 2009.
