Economic Rehabilitation: Understanding the Growth in Consumer Proposals

by Janis Sarra

May 2008

Excerpt

"Economic rehabilitation is the notion underlying Canada's bankruptcy and insolvency system. As with many jurisdictions, the Bankruptcy and Insolvency Act (BIA) provides consumer debtors with an opportunity for a "fresh start" through the mechanism of bankruptcy or through the mechanism of making a proposal to their creditors for payment of their debts, but on terms that allow them to rehabilitate their financial status. This paper examines developments in the insolvency of individuals in Canada; specifically, it undertakes a comparison of consumer proposals and consumer bankruptcies under the BIA."