Debts and what can we do about them?
It’s not a secret that capitalism we’re living in is based on the movement of a few main flows: financial, trade and service. Of course well-balanced financial flow is the main factor in our economy. Today we know what the reason of the economy crisis was. Production contraction, consumption stimulation in the developed countries, especially in the USA, massive stock exchange speculation, and irresponsible policy of real estate financing etc. The population got used to wasting money because of low-interest loans. And everything was fine before the crisis: the USA Gross National Product started getting smaller, property became cheaper, people lost their jobs. And, of course, it all influenced Canada.
Today a lot of people are in a difficult situation when their expenses are bigger than income. Their debts are growing day by day. They have to use their credit line to pay for the mortgage and make only interest payments on their credit cards. Then collectors start calling threatening with garnishment. Thank God if you don’t have these problems, and we hope you never will. But if it happened, if you couldn’t control your expenses and got into trouble of partial loss of property and your debts are growing – it’s not the end of the world. Fortunately, the citizens of Canada have an opportunity to solve this problem using the Bankruptcy and Insolvency Act, the civilized way of compromises between creditors and debtors.