Canadian consumer insolvencies are surging to levels not seen since the financial crisis, despite stronger employment. The Office of the Superintendent of Bankruptcy (OSB) just reported the highest September filings since 2009, countering any recent signs of improvement. If anything, the trend appears to be just getting started.
Canadian Insolvencies Surge To Highest Level Since 2009
Canadian Insolvency Filings: September.
Source: OSB; Better Dwelling.
Canadian consumer insolvencies have resumed climbing. The OSB received 12,668 filings in September, up 10.6% from last year. It was the second-highest ever reported for the month, only surpassed in 2009. The comparison is even more striking given unemployment is much lower today—7.1% in September 2025 vs. 8.3% in September 2009.
Canadian Credit Quality Has Been Eroding In Recent Years
Canadian Insolvency Filings: 12-Month Sum, September.
Source: OSB; Better Dwelling.
Rising consumer insolvencies have resumed after a temporary pause driven by relief. The OSB saw 139,335 filings over the 12-month period ending in September, up 2.9% from the same period last year. It’s a lofty figure—also the largest volume in September since 2009. It’s worth noting the surge in 2019, as this period was seen as an aggressive climb that hit pause in 2020, as relief policies temporarily delayed the trend.
Insolvency Growth Is Accelerating After A Brief Pause
The summer slowdown many heard about ended with a rapid acceleration. The 2.9% growth for September’s 12-month sum was nearly double the pace in August. At the same time, September’s year-over-year growth was substantially larger than the 12-month rate—evidence of acceleration, not slowing down.
Consumer insolvencies are once again approaching historic highs, challenging any evidence of stabilization. Even with a stronger job market than in past downturns, the summer lull appears to be over—filings are accelerating, and the trend is once again gaining momentum.
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