The number of bankruptcies rose by a staggering 51.6 per cent in June compared to the year before, as more Canadian consumers and businesses were unable to pay their debt.

The report from the Office of the Superintendent of Bankruptcy of Canada, released yesterday, shows there were 11,338 filings in June, up from 7,478 for June, 2008.

That's also up 9.1 per cent from the 10,364 bankruptcy filings in May, 2009.

The overwhelming majority of those filings came from consumers.

The number of proposals, a last ditch effort to pay creditors a portion of what they are owed, also jumped by 49.5 per cent, up to 3,080 from 2,060 in June, 2008.

The figures paint a picture of a growing number of Canadians who are becoming swamped by their debt at a time when unemployment is also rising because of the recession.

Equifax Canada said in its latest report last week that the average national credit card delinquency rate rose 1.56 at the end of June, a jump of 24 per cent over the same period last year. Toronto is also cited as having the highest delinquency rate of 2.03 per cent.

Businesses accounted for 515 of the total bankruptcies across the country in June. That's up 11 per cent from the 464 companies that filed the month before.

It's also an increase of 10.8 per cent from June, 2008.

Two-thirds of those filings came from Ontario and Quebec, where the recession in Canada and the U.S., as well as the higher Canadian dollar has put a strain on manufacturing companies, partly those in the automotive sector.

The report shows that companies in retail, manufacturing, and construction accounted for most of the bankruptcies.

In total, there were 33,167 bankruptcies from April to June of this year, up 38.1 per cent when compared with the same period for 2008.