September 5, 2017

The bankruptcy provisions under the Bankruptcy & Insolvency Act (“BIA”) were streamlined several decades ago to make it easier for consumers to get out of debt, but at that time it was still harder for people to acquire debt.

Bank deregulation and lack of viable consumer protection has created a very predatory lending environment over the last few decades.  Should the BIA respond in kind?  Should the Act be reformed to make it easier for people to go bankrupt?

Perhaps the reporting rules for credit bureaus should also be changed to remove bankruptcy filings immediately upon discharge, so that there is no lending prejudice to former bankrupts, allowing them to get back into debt just as quickly as the next person.

After all it is perfectly fine for Canadian chartered banks to extend credit terms that create perpetual debt.  It is nothing short of offensive for people in their eighties and on fixed income to be issued credit cards with terms that allow the 158 years of minimal monthly payments.

What do you think, would you like to see something along the lines of a do-it-yourself insolvency system with fewer rules?