Canada’s latest bankruptcy figures show a mixed picture for households and businesses. Insolvency filings fell in July 2026 from the previous month, but the total remained higher over the 12-month period ending July 31, according to new data from the Office of the Superintendent of Bankruptcy.
The figures provide the latest national snapshot of Canadians using formal bankruptcy, consumer proposal and business insolvency processes to deal with unpaid obligations, according to new data from the federal report.
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Bankruptcy filings declined in July but remained higher annually
Canada recorded 12,579 bankruptcies and proposals under the Bankruptcy and Insolvency Act in July 2026. That was 5.1 per cent below June and 0.6 per cent below July 2025.
Within the July total, 3,064 were bankruptcies and 9,515 were proposals. Bankruptcy filings decreased 4.4 per cent from June, while proposals fell 5.3 per cent.
| Measure | July 2026 | Change from July 2025 | 12 months to July 31 |
|---|---|---|---|
| Total BIA insolvencies | 12,579 | -0.6% | 150,423 |
| Bankruptcies | 3,064 | +5.8% | 35,413 |
| Proposals | 9,515 | -2.6% | 115,010 |
| Business insolvencies | 375 | -0.3% | 4,742 |
Over the 12 months ending July 31, total insolvencies reached 150,423, up 4.9 per cent from the comparable period a year earlier. The annual increase was driven primarily by consumer filings.
Consumer bankruptcy remains the main pressure point
Consumer insolvencies accounted for 96.8 per cent of all insolvency filings during the latest 12-month period. There were 145,681 consumer insolvencies, an increase of 5.4 per cent from the previous year.
Consumer bankruptcies rose 8.6 per cent to 31,840, while consumer proposals increased 4.5 per cent to 113,841. Proposals continued to make up the majority of consumer cases, although their share slipped to 78.1 per cent from 78.8 per cent a year earlier.
A consumer proposal is a formal offer to creditors to repay some or all debt under revised terms. Bankruptcy is a separate legal process that can involve the surrender of non-exempt assets and other obligations administered through a Licensed Insolvency Trustee.
The distinction matters because a proposal may allow an individual to avoid bankruptcy while making structured payments. The appropriate option depends on income, assets, debts, creditor requirements and the person’s ability to maintain payments.
Ontario and British Columbia show notable annual increases
Ontario recorded 57,494 total BIA insolvencies during the 12 months ending July 31, up 7.7 per cent year over year. The province recorded 12,626 bankruptcies, an increase of 19.1 per cent.
British Columbia reported 16,635 total insolvencies, up 13.6 per cent. Its bankruptcy count rose 8.7 per cent to 2,710, while proposals increased 14.6 per cent to 13,925.
Alberta recorded 19,305 total insolvencies, down 0.7 per cent from the previous 12-month period. However, bankruptcies in the province rose 11.8 per cent to 3,070, even as proposals declined.
Quebec reported 37,901 total insolvencies, up 1.7 per cent, while Manitoba recorded an 8.8 per cent increase to 4,191. The figures vary by province and include both bankruptcies and proposals, so a rise in total insolvencies does not necessarily mean every category increased.
Business insolvencies move in the opposite direction
Business insolvencies were lower than a year earlier. Canada recorded 375 business insolvencies in July, down 0.3 per cent from July 2025. Over the 12 months ending July 31, the total fell 8.4 per cent to 4,742.
Business bankruptcies accounted for 3,573 of those cases, down 9.1 per cent from the previous 12-month period. Business proposals fell 6.0 per cent to 1,169.
The federal report identified Management of Companies and Enterprises, Accommodation and Food Services, and Mining, Quarrying, and Oil and Gas Extraction among the sectors with the largest increases in insolvencies. Retail Trade, Wholesale Trade and Other Services, excluding public administration, recorded the largest declines.
The Office of the Superintendent of Bankruptcy cautions that monthly insolvency counts can fluctuate significantly. Quarterly and annual figures generally provide a clearer indication of longer-term trends.
What Canadians should know before filing
People facing missed payments, collection calls or growing credit balances do not automatically need to file for bankruptcy. A Licensed Insolvency Trustee can review available options, including a consumer proposal, bankruptcy and other arrangements permitted under Canadian law.
Consumers should gather information about income, assets, debts, tax obligations and secured loans before seeking advice. Anyone considering a filing should also understand how it may affect credit reporting, property, tax refunds, co-signers and ongoing payments.
Creditors and customers who have prepaid a business should watch for formal notices from the trustee or monitor. Proof-of-claim documents and filing deadlines determine whether a creditor can participate in any distribution. The Government of Canada’s insolvency services and resources provide additional information.
Canada’s July data therefore points to two simultaneous developments: overall insolvencies eased month over month, while the longer-term level remained elevated because consumer bankruptcies continued to rise.
Frequently Asked Questions
Did bankruptcy filings increase in Canada in July 2026?
Bankruptcy filings decreased 4.4 per cent from June to July 2026, but they were 5.8 per cent higher over the 12 months ending July 31 than during the previous 12-month period.
How many bankruptcies were filed in Canada over the latest 12-month period?
There were 35,413 bankruptcies under the Bankruptcy and Insolvency Act during the 12 months ending July 31, 2026.
Are consumer proposals the same as bankruptcy?
No. A consumer proposal is a formal offer to creditors to repay debt under revised terms, while bankruptcy is a separate legal insolvency process with different consequences.
Which province recorded the most total insolvencies?
Quebec recorded 37,901 total BIA insolvencies during the 12 months ending July 31, 2026, followed by Ontario with 57,494 when measured by the reported national table figures. Ontario’s total was higher than Quebec’s; the figures should be read directly from the federal table.
Who can help someone considering bankruptcy in Canada?
A Licensed Insolvency Trustee can assess a person’s debts, income and assets and explain options such as a consumer proposal or bankruptcy.
Fact-Checked: Key filing totals, percentage changes and definitions were checked against the Office of the Superintendent of Bankruptcy’s July 2026 statistics and Government of Canada insolvency resources.
Disclaimer: This article provides general information and is not a substitute for advice from a Licensed Insolvency Trustee or qualified financial professional.