Massachusetts Debtors Look to Canada
While US and Massachusetts personal bankruptcies were up in 2010, Canadian personal bankruptcies were down. The reduction was 16,704 people, or 11%. The reasons are likely to be because the Canadian economy is doing better and, because the Canadian government changed the bankruptcy rules, similar to the changes the US Congress made in 2005, making it more difficult to file for personal bankruptcy. We don’t understand it all down south here, but it has something do to with “surplus income” which is defined as income above a specific amount for a single person, and other amounts for families.
Canadian commentators point out, however, that there is significant Canadian credit card debt and 2009 was a record personal bankruptcy year in Canada. And, perhaps more significantly, Canadian debt has doubled since 2000. On the other hand, interest rates remain low and the mortgage crisis did not hit Canada as hard as many parts of the United States.