Bankruptcy 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.

Bankruptcy Definition

In Canada bankruptcy is a form of financial protection that both businesses and individuals can use to absolve debt and protect themselves from creditors. Filing bankruptcy in Canada is usually a last resort used to wipe out debt and start over fresh.

Once bankruptcy is complete, all of the debt included in the bankruptcy is considered absolved or wiped. The bad credit history leading up to the bankruptcy and the bankruptcy itself are not wiped and will remain on the individuals credit bureau for 7 years.