The problem with raw numbers
In the 12 months ending December 2025, a total of 140,457 Canadian consumers filed for insolvency under the Bankruptcy and Insolvency Act. Ontario accounted for 52,838 of those filings, more than any other province by a wide margin. Quebec followed with 34,946, then Alberta at 18,876.
Source: Office of the Superintendent of Bankruptcy Canada – Insolvency Statistics, Fourth Quarter 2025
These raw numbers dominate every headline about Canadian insolvency. But they are misleading.
Ontario has 16.2 million residents. Newfoundland and Labrador has 550,000. Comparing their raw insolvency counts tells you nothing useful about where the financial pressure is worst. When you adjust for population, the picture changes dramatically.
Consumer insolvency rates per 100,000 residents
The following table cross-references full-year 2025 consumer insolvency data from the OSB with Statistics Canada’s population estimates as of October 1, 2025. Provinces are ranked by consumer insolvencies per 100,000 residents.
| Province | Population | Consumer insolvencies | Per 100K | Bankruptcies per 100K | Proposals per 100K | YoY change |
|---|---|---|---|---|---|---|
| Newfoundland & Labrador | 549,738 | 2,395 | 435.7 | 93.7 | 342.0 | +7.0% |
| New Brunswick | 868,630 | 3,512 | 404.3 | 96.6 | 307.7 | -0.5% |
| Nova Scotia | 1,091,857 | 4,348 | 398.2 | 105.8 | 292.4 | -0.5% |
| Quebec | 9,058,089 | 34,946 | 385.8 | 119.6 | 266.2 | +1.9% |
| Alberta | 5,040,871 | 18,876 | 374.5 | 51.9 | 322.6 | -0.6% |
| Prince Edward Island | 182,508 | 593 | 324.9 | 88.2 | 236.7 | +6.1% |
| Ontario | 16,191,372 | 52,838 | 326.3 | 62.7 | 263.7 | +2.3% |
| Saskatchewan | 1,266,234 | 3,534 | 279.1 | 55.8 | 223.3 | -9.7% |
| British Columbia | 5,683,201 | 15,331 | 269.8 | 42.7 | 227.1 | +10.6% |
| Manitoba | 1,507,057 | 3,949 | 262.0 | 57.7 | 204.3 | +4.4% |
| Canada | 41,575,585 | 140,457 | 337.8 | 72.9 | 265.0 | +2.3% |
Sources: Office of the Superintendent of Bankruptcy Canada – Insolvency Statistics, Fourth Quarter 2025 and Statistics Canada – Quarterly Population Estimates, Table 17-10-0009-01
What the data actually tells us
Atlantic Canada leads the country
Newfoundland and Labrador has the highest per capita consumer insolvency rate in Canada at 435.7 per 100,000 residents. That is nearly 30% above the national average of 337.8. Roughly 1 in every 230 residents filed for insolvency in 2025. This reflects a much higher level of financial strain on households compared with the rest of Canada.
New Brunswick (404.3) and Nova Scotia (398.2) round out the top three. Three of the four Atlantic provinces sit in the top three nationally. These are provinces with older populations, higher rates of seasonal employment, and narrower economic bases than most of the country, conditions that make it harder to absorb rising consumer debt.
Ontario is not where you think it is
Ontario has the largest raw number of insolvencies in Canada at 52,838. But on a per capita basis, Ontario ranks 7th out of 10 provinces with a rate of 326.3 per 100,000, below the national average. The province that dominates every insolvency headline is, per person, less financially distressed than most of the country.
That does not mean Ontario is fine. Consumer bankruptcies in Ontario grew 7.7% year-over-year (10,144 in 2025 versus 9,415 in 2024), suggesting that more Ontarians are reaching the point where a consumer proposal is no longer viable.
The raw volume still matters because Ontario accounts for more than a third of all consumer insolvency filings nationally, and the trend in bankruptcy filings is worth watching.
Source: Office of the Superintendent of Bankruptcy Canada – Insolvency Statistics, Fourth Quarter 2025
Quebec files differently from the rest of the country
Quebec ranks fourth nationally for overall per capita insolvency at 385.8, well above the national average. But Quebec’s real story is in the breakdown between bankruptcies and proposals.
Quebec has the highest per capita consumer bankruptcy rate of any province at 119.6 per 100,000. That is more than double Alberta’s rate of 51.9 and almost double Ontario’s 62.7.
Across the rest of the country, the trend has been away from bankruptcy and toward consumer proposals. Quebec hasn’t followed that shift to the same extent.
The reasons are explored in detail in the proposal-to-bankruptcy section below, but the gap is too large to attribute to any single factor.
British Columbia is growing fastest
British Columbia (269.8) and Manitoba (262.0) have the lowest per capita insolvency rates among the provinces, roughly 20% to 22% below the national average.
BC is one of Canada’s most expensive provinces to live in, yet it has the second-lowest per capita insolvency rate. Don’t let the low rate reassure you. BC’s 12-month consumer insolvency growth of 10.6% was the fastest in the country. No other province came close. The pressure is building, and if the growth rate holds, BC won’t stay near the bottom of the rankings for long.
Source: Office of the Superintendent of Bankruptcy Canada – Insolvency Statistics, Fourth Quarter 2025
Why the proposal-to-bankruptcy ratio varies so much
Across Canada, consumer proposals outnumber bankruptcies by a ratio of 3.6 to 1. But this national average hides enormous provincial variation, and the gap matters because consumer proposals and bankruptcies have very different consequences for both the person filing and their creditors.
| Province | Consumer bankruptcies | Consumer proposals | Proposal : bankruptcy | Bankruptcy rate per 100K |
|---|---|---|---|---|
| Alberta | 2,615 | 16,261 | 6.2 : 1 | 51.9 |
| British Columbia | 2,427 | 12,904 | 5.3 : 1 | 42.7 |
| Ontario | 10,144 | 42,694 | 4.2 : 1 | 62.7 |
| Saskatchewan | 707 | 2,827 | 4.0 : 1 | 55.8 |
| Newfoundland & Labrador | 515 | 1,880 | 3.7 : 1 | 93.7 |
| Manitoba | 870 | 3,079 | 3.5 : 1 | 57.7 |
| New Brunswick | 839 | 2,673 | 3.2 : 1 | 96.6 |
| Nova Scotia | 1,155 | 3,193 | 2.8 : 1 | 105.8 |
| Prince Edward Island | 161 | 432 | 2.7 : 1 | 88.2 |
| Quebec | 10,833 | 24,113 | 2.2 : 1 | 119.6 |
| Canada | 30,289 | 110,168 | 3.6 : 1 | 72.9 |
Sources: Office of the Superintendent of Bankruptcy Canada – Insolvency Statistics, Fourth Quarter 2025 and Statistics Canada – Quarterly Population Estimates, Table 17-10-0009-01
Alberta and BC favour proposals heavily
Alberta has a 6.2 to 1 proposal-to-bankruptcy ratio. For every Albertan who files for bankruptcy, more than six file a consumer proposal instead. British Columbia (5.3 to 1), Ontario (4.2 to 1), and Saskatchewan (4.0 to 1) follow a similar pattern.
A consumer proposal lets you repay part of your debt over up to five years while keeping your assets. Bankruptcy is faster but comes with more restrictions.
In provinces where consumer proposals dominate, it suggests that more people still have enough income to make a proposal work. It also raises a question that the data can’t answer directly: are consumer proposals more accessible in some provinces simply because more Licensed Insolvency Trustees in those regions are actively promoting them?
When comparing regional differences in consumer proposal and bankruptcy filings, a link can be made between higher income-to-unsecured-debt levels out west, allowing a greater number of viable consumer proposals to be filed.
In Quebec and Atlantic Canada, lower income-to-unsecured-debt levels don’t allow for the same ratio of consumer proposals, leading to higher bankruptcy filing rates. Cultural perceptions regarding bankruptcy also play a significant role in regional insolvency statistics.
Quebec is different from the rest
Quebec’s proposal-to-bankruptcy ratio of 2.2 to 1 is far below the national average of 3.6 to 1. Quebecers are not just filing at higher rates overall. They are far more likely to file for bankruptcy than to opt for a consumer proposal.
There are several possible explanations. Average unsecured debt levels affect whether a consumer proposal is viable, because a proposal requires the ability to make ongoing monthly payments.
The density and accessibility of Licensed Insolvency Trustees offering proposal services vary by province, and some regions are better served than others. Cultural and institutional attitudes toward bankruptcy and consumer proposals also differ across provinces.
The OSB data does not specify the cause, but the difference between Alberta’s 6.2 to 1 ratio and Quebec’s 2.2 to 1 is significant.
Methodology and sources
Per capita insolvency rates are calculated as (consumer insolvency volume / population) x 100,000. Consumer insolvency volumes are 12-month totals from January 1 to December 31, 2025 from the Office of the Superintendent of Bankruptcy’s Insolvency Statistics in Canada, Fourth Quarter 2025.
Population figures are from Statistics Canada’s Quarterly Population Estimates, Table 17-10-0009-01, using the October 1, 2025 preliminary estimates as the closest available data to the insolvency reporting period. Province-level estimates are published in the Q3 2025 population release.
Territories are excluded from provincial rankings due to small sample sizes but are included in the national totals.
Sources: Office of the Superintendent of Bankruptcy Canada – Insolvency Statistics, Fourth Quarter 2025, Statistics Canada – Quarterly Population Estimates, Table 17-10-0009-01 and Statistics Canada – Canada’s Population Estimates, Third Quarter 2025
Frequently asked questions
Which province has the highest insolvency rate in Canada?
Newfoundland and Labrador has the highest consumer insolvency rate at 435.7 per 100,000 residents as of the 12 months ending December 2025, according to the OSB’s Q4 2025 data. New Brunswick (404.3) and Nova Scotia (398.2) are second and third. All three are well above the national average of 337.8.
How many Canadians filed for insolvency in 2025?
A total of 140,457 Canadian consumers filed for insolvency in 2025 under the Bankruptcy and Insolvency Act, according to the OSB’s Insolvency Statistics for the Fourth Quarter of 2025. Of those, 110,168 were consumer proposals, and 30,289 were bankruptcies. Consumer insolvency filings increased 2.3% compared to 2024.
Is Ontario’s insolvency rate above or below the national average?
Ontario’s per capita consumer insolvency rate of 326.3 per 100,000 is below the national average of 337.8, based on OSB Q4 2025 filings and Statistics Canada population estimates. Ontario ranks 7th out of 10 provinces. Ontario has the highest raw filing volume at 52,838, but that reflects its large population of 16.2 million rather than a higher rate of financial distress.
Why is Quebec’s bankruptcy rate so high compared to other provinces?
Quebec has a per capita consumer bankruptcy rate of 119.6 per 100,000 residents, more than double Alberta’s rate of 51.9, according to the OSB’s Q4 2025 data. Quebec’s proposal-to-bankruptcy ratio of 2.2 to 1 is far below the national average of 3.6 to 1. Contributing factors include differences in average debt levels, accessibility of proposal services, and provincial regulatory and cultural factors.
What is the difference between a consumer proposal and bankruptcy?
A consumer proposal is a legal agreement under the Bankruptcy and Insolvency Act where you repay part of your unsecured debt over up to five years, and your creditors forgive the rest. You keep your assets. Bankruptcy is a legal process in which most of your debts are discharged, you surrender certain assets, and it stays on your credit report for longer.
Which province has the fastest-growing insolvency rate?
British Columbia’s consumer insolvency filings grew 10.6% year-over-year in 2025, the fastest of any province, according to the OSB’s Q4 2025 data. Ontario’s consumer bankruptcies specifically grew 7.7% year-over-year. Saskatchewan had the largest decline among provinces, with consumer insolvencies down 9.7%. New Brunswick, Nova Scotia, and Alberta also declined, but by less than 1% each.
What is a per capita insolvency rate?
A per capita insolvency rate measures the number of insolvency filings relative to population size. It is calculated by dividing the total number of consumer insolvencies by the province’s population and multiplying by 100,000. This allows for fair comparisons between provinces with very different population sizes.
Does a higher insolvency rate mean a province has more debt problems?
A higher per capita insolvency rate means more residents are using formal insolvency processes to deal with debt they cannot repay. It does not capture people who are struggling with debt but have not yet filed.
A lower rate in an expensive province like British Columbia does not necessarily mean fewer people are in trouble. Some are managing debt through other means. Others have not yet reached the breaking point.