Canada insolvencies up 11.5% in June, Alberta among provinces above 2019 levels
National insolvency filings are approaching levels last seen during the 2009 financial crisis, with Alberta among the provinces where totals now exceed pre-pandemic figures.
Why it matters
Rising insolvencies in Alberta signal growing financial strain on households and businesses as debt and living costs continue to climb.
The Office of the Superintendent of Bankruptcies reported 13,254 insolvency filings across Canada in June, up 5.7 per cent from May and 11.5 per cent from a year earlier. Consumers accounted for the bulk of filings and drove most of the annual increase, though business insolvencies also rose. Bankruptcy filings specifically climbed 8.2 per cent year-over-year to 9,520 in the second quarter, an 11.8 per cent jump from the first quarter.
Charles St-Arnaud, chief economist at Servus Credit Union, said insolvencies have been stabilizing at levels not seen since the 2009 global financial crisis, even after accounting for seasonal volatility. He noted that while Canada's overall consumer insolvency rate remains below pre-pandemic levels, Alberta is among the provinces—along with British Columbia, Saskatchewan, Manitoba and Ontario—where total insolvencies have climbed above 2019 levels.
St-Arnaud attributed the pressure to elevated household debt, stagnating purchasing power and high interest rates, warning that recent high energy costs could add further financial stress. Conservative MP Jasraj Hallan said the figures show Canadians are running out of options to pay off debt, blaming the federal government for rising fuel and grocery costs.
A spokesperson for Finance Minister François-Philippe Champagne said Ottawa is responding to an unprecedented global economic challenge, pointing to measures such as boosted grocery benefit payouts, the elimination of the consumer carbon price and a pause on federal fuel excise taxes as steps to ease affordability pressures.
Compiled by the Alberta Daily Desk — an AI-written summary of reporting from the credited sources below, produced and reviewed under our editorial policy.