In Canada, we have a reset. It is called bankruptcy law. Basically when an individual cannot afford the debt he or she can incurred, all debts can be wiped out with a little court procedure.

Credit cards, business loans, and tax arrears can be wiped out. If a bankruptcee owns a modest home with a modest mortgage, the judge re-arranges the mortgage to make the mortgage payment affordable. If a bankruptcee has a modest car with a modest car loan, chances are that loan will be wiped out, and the owner gets to keep the car.

Any funds put into a pension cannot be touched by the bankruptcy process.

But no bankruptcy for student loans. And I think that should be changed. Universities need to find a better way to attract good students to their programs than by getting students into debt.

I have had a few people in my social circle go through this process. They were not high flyers with lots of assets to dissolve and provide proceeds to cover the debt. These people did get a “bad” credit rating. But within a couple of years, they had no trouble getting credit cards again.

And what often happens is that the creditors are often willing to renegotiate with the debtor, taking a fraction of the original loan is exchange for not going into bankruptcy.

And in Canada, everyone is still covered by the public health care system. Bankruptcy or credit rating have no bearing on whether one gets served or not.

So I don’t think we should have a societal reset of any kind. Such a reset only penalizes those who do manage to pay their loans.

Dave Volek is the inventor of “Tiered Democratic Governance”. Let’s get rid of all political parties! Visit

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