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Published on December 3rd, 2009 | by Canadian Credit Expert


Mixed Reactions to New Bankruptcy Laws

Canadian Bankruptcy AmendmentsBankruptcy Laws Change in Canada – Reactions are Mixed

September 2009 saw several changes to Canada’s bankruptcy laws. These “bankruptcy amendments” were first announced in August 2009 after being approved and passed by the Canadian Government.

When the topic is brought up, many Canadian bankruptcy trustees will offer you a mixture of positive and negative feedback. The temperature of the public varies even more. While many Canadian citizens have little to no understanding of bankruptcy law in Canada, those that do have strong opinions.

Some conservative Canadians may welcome the changes that make filing bankruptcy more difficult and “less rewarding” while others find the new laws restrictive and unfair.

While the pulse of bankruptcy professionals and Canadian citizens may beat at irregular intervals, there is at least one area where everyone agrees – timing.

During a Canadian recession where many businesses are laying off employees and citizens are having trouble finding work, most feel the new changes are poorly timed.

While its too soon to know the long term effects of these new bankruptcy rules, it is safe to say that more people will have longer bankruptcies and that the number of consumer proposals filed in Canada will rise considerably.

You can find a break down of these new bankruptcy laws here. Head over to Bankrupt Car Loans for more on these changes.

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About the Author

The Canadian Credit Expert most recently worked in sales financing for a major bank in Canada but has done everything from working at a new car dealership to collecting on past due loans for a Canadian auto lender.

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