Canada's bankruptcy watchdog added his voice Friday to warnings that Canadians should watch their personal debt loads.

James Callon, the superintendent of bankruptcy, said it's important for Canadians to be aware of the risks and possible consequences of taking on a large amount of debt.

"Significant events, such as a change in employment or income, a change in family status or a serious illness, can cause a huge drain on finances," he said in a commentary on the agency's website.

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"The combination of a large amount of debt and the sudden occurrence of a major life event could lead to the harsh realities of insolvency."

Callon issued the warning even as he released data showing a 9.6 per cent drop in total insolvencies — filed by either businesses or consumers — in the 12 months ending in October, compared with the same period a year earlier, when Canada was in a recession.

Business bankruptcies totalled 5,349 over the 12 months ending in October, down 22.5 per cent from the same period a year earlier.

Consumer bankruptcies fell nine per cent — to 135,962 — during those same months. But that total is still 22 per cent higher than total consumer insolvencies two years earlier, before the recession.

Total insolvencies, 12 months ending:    
  October 2010 October 2009 Change
Newfoundland and Labrador  2,493 2,619 -4.8% 
Prince Edward Island  605  558  8.4% 
Nova Scotia  5,275  5,362  -1.6% 
New Brunswick  3,761  3,946  -4.7% 
Quebec  39,891  43,804  -8.9% 
Ontario  59,675  68,429  -12.8% 
Manitoba  2,769  3,152  -12.2% 
Saskatchewan  2,489  2,594  -4.0% 
Alberta  11,414  12,278  -7.0% 
British Columbia  12,854  13,410 -4.1% 
Northwest Territories 43 50 -14.0%
Yukon  38  42 -9.5% 
Nunavut 4 11 -63.6%
Canada  141,311  156,255  -9.6% 
(Source: Office of the Superintendent of Bankruptcy)    

Canadian household debt has grown to an all-time high, spurred on in part by the impact of historically low borrowing costs.

Mark Carney, the governor of the Bank of Canada, and several economists have voiced concerns that when interest rates begin rising again, some Canadian households will be caught with debt burdens they can't handle.

With files from The Canadian Press