©1997, Association for Financial Counseling and Planning Education. All rights of reproduction in any form reserved. 9 Mandatory Financial Counseling For Bankrupts In Canada

A 1994 national study examined the perceived impact of mandatory counseling for bankrupts in Canada, using a sample of 200 bankrupts matched with their trustee or counselor. Most bankrupts felt they received considerable or extensive benefit from counseling while trustees tended to have a more moderate outlook regarding the benefits. There was congruency between both parties on what happened in the counseling sessions but less agreement on the extent of discussion of the causes leading to insolvency and legal and non-legal alternatives. This research provides baseline data on the experience and perceptions of consumer bankrupts, trustees, and private counselors in Canada. Key Words: Financial counseling, Insolvency, Bankruptcy, Canada There has been an ongoing concern for the level of personal bankruptcies in Canada,a and for the degree of and reasons for recidivism. If no attempt is made to determine the root causes of bankruptcy, the debtorb is more likely to remain in the "cycle of bankruptcy. " This cycle can be detrimental to the debtor, the family unit, the creditor, other consumers, the economy and society. It i