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Bankruptcy and Insolvency; consumer proposals; consumer bankruptcies; consumer debt; credit card debt
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Economic Rehabilitation: Understanding The Growth In Consumer Proposals Under Canadian Insolvency Legislation, Janis P. Sarra
Economic Rehabilitation: Understanding The Growth In Consumer Proposals Under Canadian Insolvency Legislation, Janis P. Sarra
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Economic rehabilitation is the notion underlying Canada’s Bankruptcy and Insolvency Act (BIA), providing consumer debtors with an opportunity for a “fresh start” through the mechanism of bankruptcy or making a proposal to their creditors for payment of their debts on terms that allow them to rehabilitate their financial status. This article undertakes a comparison of consumer proposals and consumer bankruptcies, examining 5,773 individual insolvencies in the past two years, with a view to discerning choices by individual insolvent debtors of insolvency proceeding. It compares causes of financial distress, income levels, quantum of debt and the assets of those filing proposals …