Those of us here in Boston and throughout Massachusetts went to bed last night with the sting of defeat from watching the Olympic Men’s Ice Hockey Finals. Thus, it seemed like a good time to review our sister country to the north’s personal bankruptcy situation.
According to Canadian statistics, like the US, 2009 was a record year for personal bankruptcy filings. The issue, like Massachusetts and the US, is debt: in Canada the level of “household credit per person” is up from just over $20,000 in 2001 to over $40,000 in 2009! At the end of the third quarter of 2009, an average Canadian had household debt of 140.8% of their personal disposable income!
A quick review of Canadian Bankruptcy laws shows that they are similar to the US. Bankruptcy laws in Canada vary by province, somewhat like the US states differences. Canadian bankruptcy exemptions are also similar. Canada also has a “consumer proposal” law which allows certain folks to repay a portion of their loans.
The good news for Canadians is that interest rates remain low, the economy is historically strong, and based upon ample natural resources…and, they have a phenomenal hockey team!