Why easing some of Canada’s bankruptcy rules could be good for the economy
. Canada is better off without so-called zombie firms – dead enterprises animated only by the thick ichor of subsidies flowing through their veins.
Ottawa has used an economic downturn to reform insolvency laws before. In 2009, during the Great Recession, it passed legislation to make it easier for Canadians to file proposals instead of bankruptcies. Ottawa could look at ways to make the bankruptcy process even less onerous. For example, it could open up the faster summary administration process to business owners; it’s now only available in personal bankruptcies. It could also explore whether seven years is too long for a bankruptcy to remain on a credit report; two or three years for a first bankruptcy might make more sense.
Canadians who have only signed residential leases may be shocked at the lack of protections for those signing. When an entrepreneur starts a small business, they often have to sign a 10-year agreement with a personal guarantee. If that business fails, the entrepreneur may still be personally responsible for that lease for years.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Globe editorial: Why is Justin Trudeau sowing confusion about a foreign influence registry?A foreign influence registry would oblige anyone who wants to influence public officials on behalf of a foreign government or a foreign state-owned company to register
Read more »
Globe editorial: Fiscal gravity catches up to the LiberalsWith a public service strike looming, the Trudeau government is having to face the consequences of its free-spending ways
Read more »
Signs of stabilization in home prices, but rally unlikely: BMO chief economistDaily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
Read more »
Konrad YakabuskiToday's editorial cartoon from The Globe and Mail ✏️ Columnist konradyakabuski writes that Macron’s pension reform won’t save an indebted France from financial reckoning:
Read more »
One 65-year-old’s quest for a happy, fulfilling retirement. Plus, how to get full value from your loyalty pointsContent from The Globe’s weekly Retirement newsletter
Read more »
Why Prince Harry Will Be ‘Very Much On The Sidelines’ At King Charles’ Coronation: Royal ExpertWhile Prince Harry will be in attendance at King Charles III's historic coronation, it's unlikely he'll be playing much of a role in his father's big day. ET recently spoke with royal expert Eloise Parker, who shared some insights on what will likely go down between Harry and Charles during the grand ceremony on May 6. 'I fully expect Prince Harry to…
Read more »