Is Filing a Consumer Proposal or Bankruptcy an Admission of Failure?

If you’re finding it difficult to keep up with bills and you’re behind with your rent or mortgage, you might feel as though you have failed.

It can be incredibly distressing to reach a point where you get anxious when your phone rings or you worry about how you’re going to pay for your next grocery shop.

The truth is that getting into debt is not a failure.

This is a situation that anyone can find themselves in.

Even people who have had a steady income for years and those who have been very careful with spending can end up thinking about filing a consumer proposal.

Life has a habit of throwing curveballs, and circumstances can change in the blink of an eye.

If you have money worries, you’re not alone.

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A survey carried out by the Angus Reid Institute revealed that one-third of Canadians are ‘very stressed’ about money.

Why are so many people in debt?

Many people who find themselves considering filing for bankruptcy do so because they’ve been struggling to make ends meet for a long time.

In most cases, people don’t get into debt because they overspend and live a luxurious lifestyle.

Debts creep up on you, and if you’re borrowing, you can bear the brunt of high interest fees and extra charges and penalties.

If you take out payday loans or you use credit cards, for example, even a small debt can snowball.

There are also several circumstances and scenarios that can have a dramatic impact on an individual’s finances, including unemployment and loss of earnings, tragic life events, divorce and illness.

As a society, we have also become more accustomed to living on credit, and we’re constantly bombarded by adverts, which encourage us to borrow and spend.

The average Canadian now has non-mortgage debts of almost $24,000, according to Equifax.

Help is available!

It can be daunting to realise that you’re in a position where you need help, but it’s crucial to understand that there are people out there who have the experience and the expertise to work with you to improve your financial situation and ease pressure and stress.

It’s best to tackle debt as early as possible and to recognise that anybody can find themselves facing financial ruin.

There is no need to feel like you’ve failed or to be worried, ashamed or embarrassed.

Financial advisors and credit counsellors can help you to explore the options open to you and to move forwards.


Filing a consumer proposal or bankruptcy is not an admission of failure.

Anyone can get into debt, and once you start borrowing, debts can spiral quickly.

The important thing to note if you are struggling is that there is always a way out.

Contact us today to speak to one of our expert advisors.

We’re here to help you.

Information on Consumer Proposals

Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Consumer Proposal Eligibility
How to Amend a Consumer Proposal

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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