Canada's Bankruptcy up 22.8% in October 2008

According to LeaderPost - Canadian bankruptcies jump in October
OTTAWA - Business and consumer bankruptcies in Canada jumped 7.2 per cent in October from September to 9,468, leaving them 21.1 per cent higher than a year earlier, the federal agency reported Thursday.

The increase in the number of individuals that went under financially rose by 7.5 per cent to 8,972, a 22.8 per cent jump from a year earlier, the federal Superintendent of Bankruptcy report shows.

The monthly report comes in the wake of projections that the Canadian economy slipped into recession in the current quarter of the year, which began in October.

This goes again to what I've been talking about. More credit is not a good thing in Canada. More credit means more bankruptcies.

The only I can hope for all of these bankruptcies is that they've learned their lesson and are passing on their wisdom to family and friends. I'm sure this isn't the case as most people are ashamed to have declared bankruptcy.

People can't handle debt when it gets out of control. Especially when there are job losses and a down turn in the economy.

It's not my place to question people as to what they spent their money on.

It is my place to encourage people to put cash reserves in place, and pay down their debt. Bankruptcy is a nasty option and costs a family it's financial free for 7 years or so.

The other implication is that you lose some of your self esteem. You also have to admit publicly that you've declared bankruptcy, on job applications, rent applications, life insurance applications etc.

You have to admit publicly for the rest of your life that you once declared bankruptcy. That's a heavy stigma to carry around with you.

That's what too much debt can do to a family. That's what too much debt can do to a company and even a country.

When Stephane Dion wants to create deficit spending to stimulate the economy, I would have him look at these bankruptcy figures.

Adding more debt to a over debt laden situation is only going to cause more problems.