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.

Updated for January 2023.

2023 Consumer Insolvency Filings

Consumer insolvencies began the year with strong growth. January insolvencies in Ontario increased by 39.2% compared to the prior year while total Canadian insolvencies were up 33.0%.

It should be noted that the growth was over very low January 2022 levels. Insolvency volumes did not begin their post-pandemic upswing until May 2022. However, we continue to predict accelerated insolvency filings in the coming months and expect overall growth in the 20% to 30% range for 2023.

Consumer proposals reached a new high – representing 82.8% of all insolvency filings in Ontario and 78.7% Canada-wide.

Homeowner Index On the Rise

Of particular note, we are starting to see a rise in homeowner insolvencies for the first time in several years. Our index has now returned to pre-pandemic levels. Our Homeowners Bankruptcy Index increased to 5.4% in January and a surprising 6.8% in February 2023. Time will tell if this is a permanent trend or a result of the seasonal increase in insolvencies we typically see this time of year.

Long-Term Insolvency Trends

Ontario Consumer Insolvency Statistics by Region 2022

With people returning to work post-pandemic, Ontario insolvencies ended the year up 14.5%, while Canadian consumer insolvencies grew by 11.2%. 

In total, 34,736 Ontarians across Ontario filed for insolvency in 2022. Personal bankruptcies fell 5.9% as the trend continued toward more insolvent debtors choosing a consumer proposal over personal bankruptcy.  Consumer proposals increased by 21.3% in 2022, driving the share of proposals to total insolvencies to 79%, up from 75% in 2021. In comparison, 75% of Canada-wide insolvencies are consumer proposals.

To understand how the profile of the average consumer insolvency changed, read our annual Joe Debtor Bankruptcy Study (2022 update out shortly).

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 100,184 11.2% -10.5% 20.7% 75%
Ontario 34,736 14.5% -5.9% 21.3% 79%
           

REGION*

         
Barrie Region 1,557 16% -15% 25% 82%
Belleville Region 708 19% 18% 20% 77%
Brampton 1,575 14% -18% 21% 86%
Brantford Region 639 15% -13% 23% 83%
Brockville Region 274 9% -25% 34% 71%
Cambridge 419 8% -32% 20% 85%
Chatham Region 374 17% 15% 18% 74%
City of Toronto 2,232 17% -12% 26% 83%
Cornwall Region 333 4% -15% 16% 67%
Essex-Leamington Region 221 19% -17% 31% 82%
Etobicoke 1,101 24% -14% 35% 84%
Guelph 364 22% -25% 40% 83%
Hamilton Region 1,720 30% 2% 40% 81%
Huron Region 407 15% 25% 11% 70%
Kingston Region 532 5% 15% 2% 72%
KW-Wellington Region 1,093 12% -15% 21% 81%
London Region 1,891 15% -4% 21% 79%
Markham 475 3% -13% 8% 81%
Mississauga 1,618 14% -5% 19% 82%
Newmarket & Area 610 6% -14% 13% 80%
Niagara Region 1,215 23% 11% 28% 75%
North Bay Region 345 1% -31% 17% 77%
North York 2,401 18% -6% 24% 83%
Burlington-Oakville Region 901 22% 11% 25% 79%
Orangeville & Area 254 9% 21% 6% 82%
Oshawa-Bowmanville Region 1,169 11% -9% 17% 82%
Ottawa Region 2,569 14% -12% 27% 74%
Parry Sound-Huntsville Region 248 21% -8% 31% 81%
Pembroke Region 210 -3% -20% 7% 70%
Peterborough Region 654 13% -15% 24% 79%
Pickering 506 23% -18% 34% 86%
Richmond Hill 358 4% 6% 4% 80%
Sarnia Region 357 29% 72% 17% 71%
Sault Ste. Marie Region 338 3% -3% 7% 65%
Scarborough 1,730 15% 7% 17% 82%
Stratford Region 126 -10% -23% -5% 75%
Sudbury Region 812 20% 13% 22% 73%
Thunder Bay Region 494 -2% -17% 5% 70%
Timmins Region 476 0% -5% 1% 79%
Vaughan 359 31% -5% 42% 83%
Windsor Region 937 21% 5% 25% 81%
Woodstock Region 337 31% 19% 35% 78%
*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