Business Filings Drive 12.1% Increase in 2024 Insolvencies

Insolvencies increased by 12.1 percent last year compared to 2023, with business insolvencies leading the way with a 28.6 percent rise.

The Canadian Association of Insolvency and Restructuring Professionals reports that 2024 witnessed a 15-year high in business and consumer insolvencies, indicating growing financial pressures.

Construction, transportation and warehousing, and accommodation and food services were the sectors that experienced the largest increases in insolvencies last year, as per the Office of the Superintendent of Bankruptcy. Insolvencies encompass both bankruptcies and proposals.

Association chair Andre Bolduc warns that businesses and consumers should anticipate continued pressure in 2025 due to potential tariffs and mortgage renewals.

Insolvency filings in the fourth quarter of 2024 went up by 5.2 percent year-over-year to exceed 35,000.

The rise was driven by consumer insolvencies, which rose by 6.1 percent, while business insolvencies decreased by 12.4 percent in the fourth quarter.

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