Canadians’ personal debt is a record $992 billion, which works out to about $30,600 for every man, woman and child in Canada. However, this is offset by household debt’s decline relative to net worth.

In the few cases where we find a well researched and even handed story we are very pleased — and surprised.

A March, 2006 study of US debtors, one year after their Chapter 7 discharge, (In Canada, Chapter 7 = personal bankruptcy) reports that one in four debtors was struggling to pay routine bills and one in three debtors reported an overall financial situation similar to, or worse than, when they filed bankruptcy.

The payday loan industry has received much criticism for their near usurious interest rates.

People, from all walks of life, file for bankruptcy or a proposal.

From the perspective of which is better for society and the economy it is this writer’s opinion that the US system is superior to the Canadian.

“The objective is to maintain confidence in the integrity of the Bankruptcy and Insolvency Process,” stated Inspector Brian Verheul of the RCMP GTA Commercial Crime Section.

Personal Bankruptcies in the USA rose by 30% in the 12 months ended December 31, 2005.

This is the largest number of bankruptcy petitions ever filed in any 12-month period in the history of the federal courts and is attributed to the rush to beat the new tougher bankruptcy laws that went into effect on October 17, 2005.

Bankruptcy law helps promote enterprise in Canada by encouraging entrepreneurship. Bankruptcy law also acts as a social safety net for individuals which provides them a fresh financial start and integrates them back into mainstream society as tax paying citizens.

“If this bill passes, it becomes the model for the rest of the country.” - Tony Ruprecht, MPP.