North American insolvency and bankruptcy rates rise

Financial pressures are mounting in North America, with rising insolvency rates and mortgage challenges. In Canada, Equifax reported an 18.8% year-over-year increase in insolvencies, reaching levels not seen since 2009. Mortgage delinquencies are also rising, particularly in Ontario and British Columbia. Approximately 1.15 million Canadian mortgages are scheduled for renewal in 2026, with homeowners expected to face average monthly payment increases of 15–20% as they transition from historic low interest rates.

In the United States, nonbusiness bankruptcy filings saw an 11.9% increase during the 12 months ending March 31, 2026. Common legal paths for relief include Chapter 7, which may discharge certain unsecured debts, and Chapter 13, which allows individuals with regular income to follow a court-approved repayment plan while retaining property.