Consumer insolvencies in Canada have climbed to levels not seen since the 2008-09 financial crisis, with British Columbia now recording the sharpest increase in filings anywhere in the country.

New data from the Office of the Superintendent of Bankruptcy shows more than 37,000 Canadians filed for consumer insolvency during the first three months of 2026 — an 8.5% increase over the same period last year and the highest quarterly volume since 2009.

In B.C., filings rose 16.2% year-over-year, nearly double the national average.

For Chris Sinclair, Senior Vice President and Licensed Insolvency Trustee with BDO Debt Solutions, the numbers reflect what he says is becoming an increasingly difficult reality for many Canadians.

“It is quite concerning,” Sinclair told RadioNL. “We’re starting to see national insolvency filings get over 13,000 filings per month, and that’s a pretty big number. We haven’t seen those kind of numbers probably since the global downturn about 17 years ago.”

Sinclair says financial anxiety has become unavoidable as consumers face mounting economic pressures from nearly every direction.

“You read the news and you hear about tariffs and trade negotiations and the war in the Middle East and the price of fuel,” he said. “We’ve talked ad nauseam about grocery prices and inflation. I think all this stuff just really weighs heavily on the mind of the consumer.”

He says many people are feeling trapped between stagnant wages and rapidly increasing living costs.

“I don’t think income levels are keeping up with the cost of living and inflation,” Sinclair said. “People are stressed, they’re scared, and people have a lot of consumer debt right now.”

While Canadians have spent years hoping economic conditions would improve following the pandemic, Sinclair says there are few signs of immediate relief ahead.

“I think we need to be honest right now — things are pretty dreary,” he said. “There’s lots of negative economic indicators and economic things happening out there.”

Sinclair added that unemployment concerns, rising fuel costs and persistent inflation continue making it harder for families to stretch their paycheques each month.

“In our line of work, we don’t really see that coming down in the next little while,” he said. “I do think we’re in for a bit of a bumpy road over the next few months or maybe longer.”

As financial pressures intensify, Sinclair says one of the most important things people can do is create — and stick to — a household budget.

“You’ve heard me talk about the B word before — the budget,” he said. “I think now more than ever, trying to put together a family budget is critically important.”

Sinclair says many households underestimate how quickly everyday expenses add up, especially when combined with growing debt payments.

“We only earn so much money in a month and the money has to stretch,” he said. “You’ve got to pay the mortgage, pay the rent, pay for gas, groceries, kids’ activities — all this stuff.”

He encouraged consumers to closely track spending habits, plan for unexpected expenses and re-evaluate discretionary purchases where possible.

“These aren’t rocket science concepts,” Sinclair said. “But people are really struggling and we just have to try to save dollars everywhere we can.”

At the same time, Sinclair acknowledged many Canadians are already budgeting responsibly but still finding themselves falling behind because there simply is not enough income to cover rising costs.

“Sometimes reality goes against the best of intentions,” he said. “That’s when we’re encouraging people to reach out to us.”

One of the biggest warning signs Sinclair says he sees involves consumers becoming trapped in a cycle of making only minimum payments on credit cards and lines of credit.

“A lot of people feel that by making their minimum monthly payments they’re actually doing well financially,” he explained. “But what tends to happen over time is the interest really starts to add up and people notice their principal balance isn’t really going down.”

He pointed to credit card statements that now estimate how long repayment will take if only minimum payments are made.

“I’ve seen some statements where it’s going to take 80 or 90 years to pay off the debt,” Sinclair said. “That’s just untenable.”

Other warning signs include missed payments, collection calls, legal threats and avoiding creditor communications altogether.

“We call that ‘head in the sand,’” Sinclair said. “People just start ignoring things and that’s a really bad warning sign.”

Despite the rising insolvency numbers, Sinclair stressed there are options available for people struggling with debt, including budgeting help, debt repayment plans, consumer proposals and bankruptcy protection.

“There is no harm in reaching out to a Licensed Insolvency Trustee,” he said. “You don’t have to do anything. We’re not going to force you into bankruptcy, but we are going to talk about your options.”

Sinclair says many people leave their initial consultation feeling relieved simply knowing there may be a path forward.

“That free hour consultation can really be eye-opening and very helpful for some people,” he said. “There’s no judgment. We’re here to help.”