These borrowers are most likely to become insolvent history shows

New figures shine a light on Canadian consumer insolvencies over a 10-year period.

The Office of the Superintendent of Bankruptcy Canada’s analysis of insolvencies between 2007 and 2016 shows an overall increase from 108,905 in 2007 to 129,727 in 2016, peaking during the financial crisis at 158,441 in 2008-09.

Proposals increased during the period while bankruptcy filings decreased and the overall insolvency rate saw a slight increase from 3.9 per 1000 adults in 2007 to 4.4 in 2016.

The majority of insolvency filings were from those aged 25-44 years or 45-64 years (together 70% of the Canadian population) with men slightly more likely to file than women throughout the period.

Although insolvencies among 25-44 year olds increased during the Great Recession and then decreased, it settled at 57,000 in 2016, up 7.5% from 2007. However, the share of all insolvent consumers who were in this age bracket declined from 52% to 45% over the 10-year period.

Among 45-64 year olds, there were 36,000 insolvencies in 2007, rising to 51,000 during the recession and holding steady through 2016.

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