Debt Relief Experts
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.
This page is updated monthly as the Office of the Superintendent of Ontario releases data.
Updated for August 2024.
2024 Consumer Insolvency Filings
Consumer insolvencies in Canada are nearing historical highs, reminiscent of levels last seen during the aftermath of the 2008-2009 recession. In August 2024, insolvency volumes increased by 8.9% across Canada and 15.4% in Ontario compared to the previous year. When adjusting for two fewer working days in 2024, the average daily volumes show an even starker rise: 19.3% nationwide and 26.3% in Ontario.
The current figures are alarmingly close to previous records. Canadian consumer insolvencies are just 5% below their peak for the month of August, which was set in 2009 as the country emerged from the last major recession. Ontario’s insolvency numbers are only 18% short of their August 2009 highs.
This trend underscores the significant financial pressures Canadians continue to face. Recent declines in interest rates are not enough to offset the rising cost of living and the resulting pressure on household budgets across the country.
As Canadians grapple with this challenging economic landscape, many resort to credit cards to bridge the gap in their daily finances. This trend has led to a dramatic surge in credit card debt. According to Equifax Canada, credit card balances soared by 13.7% in the second quarter of 2024, with cardholders now carrying the highest average balance since 2007. This alarming increase in unsecured debt will push more households to their financial limits. As a result, consumer insolvencies are expected to continue their upward trajectory, potentially eclipsing the levels seen in the wake of the 2008-2009 recession.
In Ontario, proposal growth (16.9%) again outpaced bankruptcy growth (8.8%). The trend was similar across Canada, with proposals up 10.0% and bankruptcies up 4.7%.
Year-to-date, Ontario consumer insolvencies are up 19.4%, while total Canadian volumes increased by 13.9%.
Proposal share was 82.4% of all insolvencies in Ontario and 79.2% across Canada.
Our Hoyes Michalos Homeowners Bankruptcy Index hovered at 4.8% in July 2024. Year-to-date, our index is 5.1%, up from 4.2% for 2023.
Ontario Consumer Insolvency Statistics by Region 2023
Ontario insolvencies ended the year up 26.2%, while Canadian consumer insolvencies grew by 23.0%.
In total, 43,831 Ontarians across Ontario filed for insolvency in 2023. Personal bankruptcies increased by 12.6%, while consumer proposals grew by 29.7%. The trend toward more insolvent debtors choosing a consumer proposal over personal bankruptcy continued, driving the share of proposals to total insolvencies to 82%, up from 79% in 2022. In comparison, 79% of Canada-wide insolvencies are consumer proposals, up from 75% the year before.
To understand how the profile of the average consumer insolvency changed, read our annual Joe Debtor Bankruptcy Study.
Below is a summary of 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.
REGION* |
Consumer Insolvencies | Total Growth | Growth Bankruptcy | Growth Proposal | % Proposals |
| Canada | 123,233 | 23.0% | 6.6% | 28.3% | 79% |
| Ontario | 43,831 | 26.2% | 12.6% | 29.7% | 82% |
REGION* |
|||||
| Barrie Region | 1,867 | 20% | 15% | 21% | 83% |
| Belleville Region | 921 | 30% | 13% | 35% | 80% |
| Brampton | 1,994 | 27% | 30% | 26% | 85% |
| Brantford Region | 861 | 35% | 7% | 40% | 87% |
| Brockville Region | 306 | 12% | 5% | 14% | 73% |
| Cambridge | 497 | 19% | 35% | 16% | 83% |
| Chatham Region | 515 | 38% | 5% | 49% | 80% |
| City of Toronto | 2,703 | 21% | 27% | 20% | 82% |
| Cornwall Region | 400 | 20% | -22% | 41% | 79% |
| Essex-Leamington Region | 299 | 35% | 59% | 30% | 79% |
| Etobicoke | 1,327 | 21% | 18% | 21% | 84% |
| Guelph | 433 | 19% | 24% | 18% | 82% |
| Hamilton Region | 2,145 | 25% | 20% | 26% | 81% |
| Huron Region | 522 | 28% | 2% | 40% | 76% |
| Kingston Region | 595 | 12% | 1% | 16% | 74% |
| KW-Wellington Region | 1,326 | 21% | 6% | 25% | 84% |
| London Region | 2,405 | 27% | 11% | 32% | 81% |
| Markham | 660 | 39% | 3% | 47% | 86% |
| Mississauga | 2,021 | 25% | 8% | 29% | 84% |
| Newmarket & Area | 849 | 39% | 7% | 47% | 85% |
| Niagara Region | 1,632 | 34% | 19% | 40% | 78% |
| North Bay Region | 446 | 29% | 30% | 29% | 77% |
| North York | 3,128 | 30% | 11% | 34% | 86% |
| Burlington-Oakville Region | 1,150 | 28% | 15% | 31% | 82% |
| Orangeville & Area | 332 | 31% | 4% | 37% | 86% |
| Oshawa-Bowmanville Region | 1,642 | 40% | 22% | 45% | 84% |
| Ottawa Region | 3,119 | 21% | 2% | 28% | 78% |
| Parry Sound-Huntsville Region | 286 | 15% | 26% | 13% | 79% |
| Pembroke Region | 272 | 30% | -13% | 48% | 79% |
| Peterborough Region | 768 | 17% | 23% | 16% | 78% |
| Pickering | 662 | 31% | 24% | 32% | 87% |
| Richmond Hill | 452 | 26% | 7% | 31% | 83% |
| Sarnia Region | 388 | 9% | 6% | 10% | 71% |
| Sault Ste. Marie Region | 449 | 33% | 25% | 37% | 67% |
| Scarborough | 2,235 | 29% | 6% | 34% | 85% |
| Stratford Region | 177 | 40% | 39% | 41% | 76% |
| Sudbury Region | 942 | 16% | -11% | 26% | 79% |
| Thunder Bay Region | 612 | 24% | -4% | 36% | 77% |
| Timmins Region | 503 | 6% | -20% | 12% | 84% |
| Vaughan | 450 | 25% | 37% | 23% | 82% |
| Windsor Region | 1,148 | 23% | 46% | 17% | 77% |
| Woodstock Region | 367 | 9% | -12% | 15% | 82% |
| *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 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
