Ontario Bankruptcy and Consumer Proposal Statistics

Ontarians continue to carry record levels of personal debt and for many residents, a consumer proposal or a personal bankruptcy becomes the only way out of financial trouble.

We update this page for monthly data trends as they are released by the Office of the Superintendent of Ontario.

Below you will also find commentary on the most recent annual consumer proposal and bankruptcy statistics by region for 2017.

Monthly Trends 2018 Ontario Consumer Insolvency Filings

These statistics are updated monthly based on data released by The Office of the Superintendent of Bankruptcy.  The OSB data is released at the end of the month and is generally two months in arrears.

Consumer insolvencies in Ontario declined 3.6% in June compared to June 2017. Proposals were down 1% while bankruptcies were down 7.3%.

Hover over the bars to see the most recent consumer insolvency numbers for Ontario.

In the first half of 2018, Ontario consumer insolvencies declined a moderate 1.3% with bankruptcies down 6.8% and proposals up 2% year-to-date.

Consumer proposals are the debt relief of choice for insolvent debtors. Proposals accounted for 60.4% of June consumer insolvencies and 61.6% of all consumer insolvencies filed in the first six months of the year.  High income that results in additional surplus income payments in a bankruptcy, and home equity, are the two primary reasons why heavily indebted consumers are increasingly choosing a proposal over bankruptcy.

A prolonged period of low interest rates and rising home equity have combined to help most Ontarians keep ahead of their debt payments. This has led to a prolonged decline in consumer insolvencies in the province overall.

Higher overall debt levels, however, remain a concern, and a change for the worse in any of these economic conditions will lead to increased loan default and, ultimately, higher insolvency rates.

Low interest rates and strong employment have helped restrain consumer insolvencies in Ontario over the past year. As housing prices have increased, the attractiveness of debt consolidation over insolvency as a debt restructuring mechanism has helped temper the growth in Ontario consumer insolvencies despite record debt levels. However, even a small negative change in economic conditions could trigger a shift towards a stronger growth trend for consumer insolvencies in Ontario as we saw happen in several western provinces in Canada in 2016.

Consumer Insolvency Statistics Ontario 2017

Total insolvencies filed by Ontario consumers declined 3.6% in 2017 according to data released by the Office of the Superintendent of Bankruptcy.

To see insolvency statistics, consumer debt and debt-to-income ratio by city & region across Ontario, see our Interactive Consumer Debt and Bankruptcy Statistics Map

In total, 38,167 hard working individuals filed insolvency in Ontario in 2017.

Personal bankruptcies fell 9.3%  while consumer proposals increased 0.5%.

In 2017, 60% of consumer insolvencies filed in Ontario were consumer proposals.  Heavily indebted consumers with high income and high asset values turn to a consumer proposal as a way to avoid high surplus income payments in a bankruptcy and keep their home. In 2017, homeowners were not a significant driver of consumer proposals as seen by the decline in our Homeowner’s Bankruptcy Index. Instead, indebted homeowners have relied on their home equity to refinance their credit card and other debt through a second mortgage, HELOC or debt consolidation loan.

The increase in proposals in 2017 is more a reflection of strong employment conditions in Ontario. Insolvent debtors with a household income above the government mandated thresholds limits are more likely to choose a consumer proposal as an alternative to bankruptcy in order to spread potential surplus income payments over a period of up to five years. In fact, based on an update of our bankruptcy study, the average consumer proposal filer earned an income that was 34% higher than the average person filing bankruptcy in 2017.

Below is a summary on insolvencies by geographic region as summarized by Hoyes Michalos based on insolvency statistics by FSA provided by the Office of the Superintendent of Bankruptcy (OSB). Regional FSA allocations may differ slightly from annual economic region data provided by the OSB as the regional data summarized by Hoyes Michalos provides additional location details than is available by economic region.

You can also see this information in an interactive consumer debt map which shows total insolvencies for 2017, average consumer debt levels, and unsecured debt-to-income by region.

REGION*

Consumer Insolvencies Total Growth Growth Bankruptcy Growth Proposal % Proposals
Canada 122,198 -3% -9% 3% 53%
Ontario 38,167 -3.6% -9.3% 0.5% 60%

REGION*

Barrie Region 1,700 -5% -13% 1% 61%
Belleville Region 822 -9% -21% -2% 63%
Brampton 1,733 2% -7% 6% 70%
Brantford Region 595 -17% -24% -13% 62%
Brockville Region 541 7% 10% 4% 43%
Cambridge 440 -4% -11% 2% 58%
Chatham Region 399 -4% -19% 13% 54%
City of Toronto 2,244 2% 3% 1% 60%
Cornwall Region 458 -4% -1% -8% 47%
Leamington-Essex Region 280 -2% -1% -3% 58%
Etobicoke 1,082 4% -2% 7% 63%
Guelph 336 2% -5% 7% 57%
Hamilton Region 1,558 -6% -14% 0% 60%
Huron Region 389 -18% -25% -8% 48%
Kingston Region 501 -9% -16% -2% 55%
KW-Wellington Region 1,101 -9% -19% -1% 58%
London Region 2,091 -12% -16% -8% 58%
Markham 473 -10% -5% -13% 68%
Mississauga 1,862 -6% -13% -2% 66%
Newmarket & Area 630 -2% 1% -5% 59%
Niagara Region 1,305 -13% -12% -14% 60%
North Bay Region 502 -3% 3% -8% 54%
North York 2,691 0% -2% 1% 68%
Burlington-Oakville Region 982 -12% -21% -5% 64%
Orangeville & Area 279 -3% -13% 4% 63%
Oshawa-Bowmanville Region 1,121 0% -7% 4% 63%
Ottawa Region 3,064 1% -5% 8% 51%
Parry Sound-Huntsville Region 407 -2% -28% 30% 60%
Pembroke Region 335 12% -19% 73% 52%
Peterborough Region 698 -1% 5% -4% 61%
Pickering 503 0% -11% 7% 67%
Richmond Hill 376 -15% -5% -20% 63%
Sarnia Region 346 -7% -25% 19% 53%
Sault Ste. Marie Region 425 14% 10% 25% 29%
Scarborough 1,893 -3% -11% 1% 68%
Stratford Region 145 -6% 0% -11% 53%
Sudbury Region 1,133 -3% -11% 5% 57%
Thunder Bay Region 503 -8% -13% -2% 44%
Timmins Region 510 -5% -5% -5% 56%
Vaughan 394 14% -4% 27% 64%
Windsor Region 982 10% 4% 14% 57%
Woodstock Region 306 -15% -19% -11% 55%
*Region includes surrounding rural areas

Who files insolvency in Ontario?

The average insolvent debtor looks much like the average person in Ontario. They are working and struggling to make ends meet. To read more about the what the average bankrupt looks like, see our bankruptcy research study: Joe Debtor.

Press Inquiries

For commentary and information about consumer insolvencies and debt issues in Ontario, contact:

J. Douglas Hoyes
CA, CPA, Licensed Insolvency Trustee
Email Doug

Ted Michalos
CA, CPA, Licensed Insolvency Trustee
Email Ted