Canadian consumers continue to face significant financial pressure in 2025 and early 2026. Rising housing costs, higher interest rates, inflation, and increased reliance on credit have all contributed to growing debt levels across the country — including here in Nova Scotia.
According to the Office of the Superintendent of Bankruptcy (OSB), consumer insolvencies in Canada reached 140,457 filings in 2025, representing the highest annual total since 2009.
For many Nova Scotians, the financial strain has become increasingly difficult to manage. We are seeing more individuals and families struggling with:
- Credit card debt
- CRA tax debt
- High mortgage and vehicle payments
- Rising grocery and utility costs
- Use of high-interest lending products
- Reduced financial flexibility despite steady employment
At Golding & Associates, we continue to see strong demand for debt relief solutions such as consumer proposals and bankruptcy filings throughout Nova Scotia.
Consumer Proposals Continue to Dominate Insolvency Filings
One of the biggest shifts over the past several years has been the dramatic rise in consumer proposals.
In 2019, consumer proposals represented approximately 47% of insolvency filings in Nova Scotia. Today, proposals account for 73% of consumer insolvency proceedings across Nova Scotia.
There is a difference in the percentage of people filing bankruptcy vs consumer proposals regionally in Nova Scotia.
In the Annapolis Valley (including Kentville, New Minas, Windsor, Berwick, Kingston and surrounding areas), there were a total of 485 filings. Of these, 32% (155) were bankruptcies and 68% (330) were consumer proposals. The Halifax area (including Dartmouth, Sackville, Eastern Shore, St. Margarets Bay and surrounding areas) had 77% (1314) consumer proposals and 23% bankruptcy filings.
Bankruptcy and Consumer Proposals in Nova Scotia: 2025/2026
| Bankruptcy | % of Bankruptcy | Proposals | % of Proposals | Total | |
|---|---|---|---|---|---|
| Cape Breton | 226 | 32% | 490 | 68% | 716 |
| North Shore | 170 | 26% | 477 | 74% | 647 |
| Annapolis Valley | 155 | 32% | 330 | 68% | 485 |
| Southern | 147 | 27% | 394 | 73% | 541 |
| Halifax | 401 | 23% | 1314 | 77% | 1715 |
| Unknown | 56 | 23% | 187 | 77% | 243 |
| Nova Scotia (Totals) | 1155 | 27% | 3192 | 73% | 4347 |
This reflects a major change in how Canadians are dealing with debt problems.
Many consumers are choosing consumer proposals because they allow them to:
- Stop interest immediately
- Reduce unsecured debt
- Avoid wage garnishments
- Keep important assets such as homes and vehicles
- Make one affordable monthly payment
- Avoid bankruptcy in many situations
For many Nova Scotia families, a consumer proposal has become the preferred alternative to bankruptcy.
Why More Nova Scotians Are Filing Consumer Proposals
Over the last several years, several economic factors have created financial pressure throughout the province.
Higher Interest Rates
Many consumers who previously managed their debt comfortably have struggled as interest rates increased sharply. Variable-rate mortgages, lines of credit, and credit card balances have become significantly more expensive to carry.
Increased Cost of Living
Not only is it in the news, the people we talk to every day tell us how the increased costs of living are making it hard to make ends meet. Nova Scotians have experienced substantial increases in:
- Food costs
- Insurance premiums
- Property taxes
- Rent and housing costs
- Heating and fuel expenses
This has left many households relying more heavily on credit just to cover monthly living expenses.
Larger Debt Loads
Consumers are now carrying higher average debt balances than they were several years ago. It is increasingly common to see individuals with:
- Multiple maxed-out credit cards
- Consolidation loans
- High vehicle financing payments
- CRA tax arrears
- Payday loans
- High interest finance company loans
Many people are making minimum payments but seeing little progress because so much of the payment goes toward interest.
Bankruptcy vs Consumer Proposal in 2025
While bankruptcy is still an important debt relief solution in some cases, consumer proposals are now the more common option for many working Nova Scotians.
A bankruptcy may still be appropriate when:
- Income is very limited
- Debt levels are extremely high
- There are few assets to protect
- Monthly proposal payments would not be affordable
However, many individuals prefer a consumer proposal because it allows them to settle debt while maintaining greater financial stability moving forward.
A consumer proposal can often reduce unsecured debt by 50% to 80%, while freezing interest and stopping collection activity immediately.
Debt Problems Are Affecting More Working Professionals
One of the biggest misconceptions about insolvency is that it only affects unemployed individuals.
In reality, many people seeking help in 2025 are:
- Employed full-time
- Homeowners
- Self-employed
- Professionals
- Families with dual incomes
In many cases, people have simply reached a point where rising costs and accumulated debt are no longer sustainable.
We are also seeing more clients who:
- Used credit heavily during periods of inflation
- Relied on debt during illness or reduced income
- Are struggling after mortgage renewals at higher rates
- Have fallen behind with CRA obligations
Nova Scotia Insolvency Trends Heading Into 2026
Early 2026 statistics continue to show elevated insolvency activity across Canada. Consumer insolvencies for the first quarter of 2026 reached 37121 vs 34225 in the first quarter in 2025. Nova Scotia has 278 bankruptcy filings in this period and 793 consumer proposals (a total of 1071). This was a modest decrease from the first quarter of 2025 which saw 1076 filings.
While interest rates have stabilized somewhat, many consumers continue to feel the effects of several years of increased borrowing costs and inflation.
As a result, we expect:
- Consumer proposal filings to remain strong throughout 2026
- Continued pressure on household finances
- Increased insolvency activity related to tax debt and mortgage renewals
- More consumers seeking early debt advice before reaching a crisis point
Getting Help With Debt in Nova Scotia
If you are struggling with debt, you are not alone — and there are options available.
Speaking with a Licensed Insolvency Trustee can help you understand:
- Whether a consumer proposal is right for you
- Alternatives to bankruptcy
- How to stop collection calls and garnishments
- Ways to reduce monthly debt payments
- How to rebuild financially moving forward
At Golding & Associates, we provide compassionate, judgment-free debt help to individuals and families across Nova Scotia, including:
- Halifax
- Dartmouth
- Bedford
- Kentville
- New Minas
- Windsor
- Bridgewater
- Digby
- The Annapolis Valley
- And surrounding communities