Should I Feel Guilty About Filing Bankruptcy?

It is very common that people say they are racked with guilt about filing for bankruptcy.

Many people contemplating bankruptcy also have strong feelings of guilt.

This is one of the reasons why people wait and wait and often only file bankruptcy after being pestered to death by collection calls or being called at work by collectors or after being threatened by a wage garnishee.

All this guilt adds to stress, causes sleepless nights and leads to arguments at home and especially causes stress to the children.

So, why do they feel all that guilt?

Some say filing bankruptcy is an admission of failure.

Some say only dead beats file for bankruptcy.

Some say that if they file bankruptcy they will lose all their assets.

They say that if they file bankruptcy their friends and neighbours will find out.

They also say that they will never get credit again.

Should I Feel Guilty About Filing BankruptcySome people say that if they file for bankruptcy it’s going to affect their spouse who has her own job and is in no way responsible for my debt.

Some say they will not file because Income taxes cannot be erased in a bankruptcy.

All of these statements are FALSE!

We have dispelled these and other myths on our Bankruptcy Myths page.

All of this anguish is unnecessary.

The false pride of the debtor only hurts himself and his family.

No one should feel guilty about filing for bankruptcy for the following reasons:

  • It is a Canadian resident’s right to file bankruptcy;
  • Last year (2015), more than 120,000 people filed for bankruptcy or filed a consumer proposal;
  • The major tenet underlying Canadian bankruptcy is that an honest but unfortunate debtor deserves a fresh financial start.
  • Law makers recognize that not only does a debtor deserve a fresh financial start but they must be able to retain some assets to aid in their fresh start and to preserve their dignity. This is why people are able to keep some equity in:
  • A vehicle;
  • Clothing;
  • Household effects;
  • A home;
  • Tools of the trade;
  • RRSP’s, RRIF’s and DPSP’s.

See the assets you can keep as set by your province or territory.

So, what is the answer posed by the title “Should I feel guilty about filing bankruptcy?” Without a doubt, you should NOT feel guilty about filing bankruptcy. If you have to, file bankruptcy without guilt, and get the fresh financial start that law makers have made available.

If you have any questions about bankruptcy or consumer proposals you can set up a FREE consultation with our trustees, in our 426 Trustee offices, in every province and territory in Canada or call Bankruptcy Canada direct: 1-877-879-4770.