According to a report from an insolvency practice in Canada, there is a serious stigma that Canadians have with bankruptcy, to the point that most respondents were willing to do nearly anything instead of filing for bankruptcy. More than 2,000 Canadians were surveyed for this information, and many responded to the survey by saying they would rather work 10 hours of overtime per week for a year, or give up their cell phone for a year, or even sell their organs than seek professional help in the form of a bankruptcy.
Though this information may be different from country to country, the sentiment is likely the same. Bankruptcy is portrayed as this horrible step in any person’s life. And yes, bankruptcy isn’t a fun process that you look forward to. But it isn’t the massive problem that many make it out to be. In a much more literal sense, it is a solution to a problem: your debt.
What we can’t deny is that this stigma is real, and the problems that this implication creates is that some people who should seek bankruptcy probably won’t out of fear. People who are curious about bankruptcy should go into it with an open mind. Ask questions and consult with an attorney if you are feeling unsure about what bankruptcy can do for you.
Whether you eventually file a Chapter 7 or Chapter 13 bankruptcy, either process could greatly benefit you in the future.
Source: mortgagebrokernews.ca, “Canadians tend to see personal bankruptcy as a major stigma – study,” Ephraim Vecina, March 13, 2018