Breaking the Bankruptcy and Insolvency Stigma (MNP 3 Minute Debt Break)

Breaking stigmas means ridding ourselves of our assumptions, generalizations, and broad-brush statements that are harmful to individuals and groups. We have seen strong movements and positive progress in breaking stigmas that have plagued society for so long, especially stigmas surrounding mental health. Given how connected our finances and our mental health are, we should talk more about breaking stigmas surrounding finance. 

The Money and Mental Health Policy Institute, based in the UK, published research which concluded 46 percent of all individuals facing debt problems also reported facing mental health problems. Whether the mental health problems were caused by the financial difficulties or vice versa, there’s no denying there is a strong link between the two. 

Unfortunately, we are often our own harshest critics. The stress and anxiety brought on by excessive debt may lead you to convince yourself of things that simply aren’t true: that you’re a failure, that you’re alone in your experience, that you’re not worthy of help, or that your situation is beyond helping. 

Although you may not recognize it in the moment, these are stigmas. And just like any other harmful stigma, you are much better off without it; we need to do the hard thing and analyze individual circumstances, rather than the easy thing which is to make generalizations and assumptions.

Even if you’ve avoided judging yourself too harshly, there’s no guarantee that the people around you won’t believe or perpetuate stigmas. It’s common for individuals who are struggling financially to worry about what others will think of them. These fears are normal. 

Nobody can completely shield you from the sometimes harsh judgments of others, but at MNP Debt, you can receive some context and data to ease your mind.

MNP’s Consumer Debt Index released in April 2021 revealed that more than half of Canadians have $200 per month or less standing between them and insolvency. This would indicate that the amount of people in your social circle who either have, should, or will soon seek professional help managing their debt is probably larger than you think.

Licensed Insolvency Trustees, or LITs and other debt professionals also hold high standards of confidentiality. Aside from the people you share debt or bank accounts with, and the people you owe money to, nobody needs to know that you’re seeking professional help to manage your credit.

The first step to reach out for assistance can be difficult, but understand that an LIT will provide a safe and judgment-free space to talk about debt issues and find solutions. The consultation is free; no charge and no judgment. 

MNP Debt has the tools and experience to help brighten your financial future. Together you can find the solution that best fits your situation, whether it is a Bankruptcy, Consumer Proposal or other options.

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