Is There Still A Social Stigma About Filing Bankruptcy?
Traditionally, people felt embarrassed or ashamed when they experienced financial problems.
In fact, people rarely talked about any cash flow issues or financial difficulties they experienced.
Certainly, filing for bankruptcy wasn’t something that was openly discussed in social circles or amongst work colleagues.
As society evolved, however, people became more open to the idea of talking about financial matters.
Despite this, being in debt remained something of a taboo.
So, is there still a social stigma about filing bankruptcy?
Yes and no.
While people are now far less judgemental when others experience financial problems, some individuals still feel a sense of shame if they’re unable to resolve their debt issues alone.
Unfortunately, this leads to people avoiding seeking help for debt problems and can have a further negative impact on their finances.
However, there is no need to feel embarrassed or ashamed about experiencing financial problems.
As the average level of household debt increases in Canada, more and more people are facing the same issues as you.
Is Bankruptcy Becoming More Common?
The number of people being declared insolvent in Canada is on the rise, particularly when compared to decades ago.
In fact, personal insolvencies reached their highest level in 2019 and these figures are expected to increase even more in 2020.
As filing for bankruptcy or making a consumer proposal is now far more common than it used to be, this may be one reason why there is much less of a social stigma associated with insolvency than there was once.
In addition to this, we’re far more used to being in debt than generations before us.
Today’s adults routinely have credit from multiple lenders, rather than just a mortgage and, perhaps, a car loan.
From student loans and financing to credit cards and payday loans; living in debt has become a way of life for many adults.
Are Bankruptcies Made Public?
Although personal bankruptcies are a matter of public record, it’s highly unlikely that anyone you know is going to realize you’ve filed for bankruptcy unless you tell them.
It’s very rare that anyone would take the time to search for this information or pay the relevant fees to access the limited information that’s publicly available.
While it’s often big news when a well-known company goes bankrupt, personal bankruptcies are very different.
Is Filing for Bankruptcy a Good Idea?
Whether or not filing for bankruptcy is a good idea depends on your personal circumstances.
Although no-one wants to declare themselves bankrupt, it may be the most effective way for you to resolve your financial issues and reset your finances.
However, there are various other debt solutions that may enable you to solve your financial problems without filing for bankruptcy.
If you want to know whether filing for bankruptcy is a good option for you, it’s important to speak to a licensed insolvency trustee.
At Bankruptcy Canada, we’re always on hand to provide the assistance you need.
To talk to a trustee today, contact us now at (877) 879-4770.