Consumer bankruptcies in Canada - Data and Analysis (1990-2032)

Consumer bankruptcies are estimated to reach 32,989 in 2026, an 8.9% increase from 2025. Despite lowered interest rates, high prices continue to strain household budgets, making debt repayment challenging. According to a February 2026 report from TD Economics, grocery prices in Canada have risen by over 30.0% since 2019. Similarly, the cost of rent, mortgages, utilities and other municipal services rose 28.5% from 2020 to 2025, according to Statistics Canada. Also, a continued weak job market has made it harder to curb the cost of living, leading to more people struggling with insolvency. Consumer bankruptcies rose from 2021 to 2026, increasing at an annualized rate of 3.7%, though the underlying story is more volatile. In 2021 and 2022, consumer bankruptcies continued their drop that began in 2020, as government stimulus packages shielded many consumers from significant fallout during the pandemic. Benefits such as the Canada Worker Lockdown Benefit (CWLB) continued through mid-2022, keeping workers afloat. Consumer bankruptcies fell by 16.5% and 10.5%, respectively. In 2023, as these stimulus programs ended and the Bank of Canada raised interest rates in response to high inflation, debt repayment became significantly more challenging for households. Budgets were strained by the rising cost of goods and services, while the end of relief measures left many consumers without financial buffers. As a result, bankruptcies rose by 6.6%. This trend continued into 2024 and 2025, as wage growth stagnated, leaving consumers focused on paying current bills rather than paying off loans and other interest-bearing obligations. Many consumers have begun to rely more on credit cards for basic living expenses, leading to higher aggregate household debt.