# North American consumer bankruptcy and insolvency rise

> Live situation record from CLSTR: https://clstr.news/situations/north-american-consumer-bankruptcy-and-insolvency-rise
> Updated: 2026-08-21T17:15:27.000Z. Sources: 6. Developments: 2.

North American consumers are experiencing rising levels of insolvency and personal bankruptcy due to mounting financial pressures.

In the United States, personal bankruptcy filings have seen significant growth. Data from 2025 showed more than 500,000 filings, a nearly 50% increase from 2022 levels, with a 12% year-over-year increase reported in June 2026. Nonbusiness bankruptcy filings in the U.S. rose by 11.9% during the 12 months ending March 31, 2026.

In Canada, insolvency rates have increased by 18.8% year-over-year, reaching levels not observed since 2009. This trend is accompanied by rising mortgage delinquencies in Ontario and British Columbia. The situation is further complicated by approximately 1.15 million Canadian mortgages scheduled for renewal in 2026, which are expected to result in average monthly payment increases of 15–20% as homeowners transition from historic low interest rates.

## Timeline

### 2026-08-21: North American insolvency and bankruptcy rates rise

Insolvencies are rising in North America, with Canadian insolvencies up 18.8% and US nonbusiness bankruptcy filings increasing by 11.9% as mortgage renewals and debt pressures mount.

2 sources. https://clstr.news/cluster/north-american-insolvency-and-bankruptcy-rates-rise

### 2026-08-19: United States personal bankruptcy filings rise amid economic distress

Personal bankruptcy filings in the US are surging, with a 12% increase in June 2026, signaling growing economic distress as consumers struggle to pay bills.

4 sources. https://clstr.news/cluster/united-states-personal-bankruptcy-filings-rise-amid-economic-distress

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Cite as: North American consumer bankruptcy and insolvency rise. CLSTR, https://clstr.news/situations/north-american-consumer-bankruptcy-and-insolvency-rise