Debt happens to everyone, so don’t be afraid to talk about it

2021-05-28   minute read

John Athanasiou


Debt Solutions

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Talking about money with strangers is never easy, especially if there are financial problems. Discussing financial problems often doesn’t happen at all due to the perceived stigma often associated. This hesitation prevents many people from seeking help for their financial struggles due to the guilt, shame, or embarrassment — which can be damaging to their health and family. 

Often a Bankruptcy or Consumer Proposal is exactly what an individual needs to get their financial situation back on track. However, there’s a persistent misconception about Bankruptcy which keeps people from taking the first step, so let’s see if we can debunk some of these here.

Myth 1: Don’t pay their bills on time

Often people assume that those that file for bankruptcy don’t pay their bills on time. That is not always the case. Many bankrupt people often maintain their regular household bills, and in many cases even keep up with the minimum monthly payments on their debt obligations.

Individuals often feel so guilty about paying their bills that they reduce spending elsewhere — and groceries and personal care are the first usually to get trimmed. This is when an individual needs to take a step back and consider what’s happening. Is your health and well being worth it?

Myth 2: Bankruptcy is for low-income households

Another common myth is people that file for Bankruptcy have no money or are low income. At MNP, we’ve helped individuals from all demographics and income levels — from those on a fixed income or pension right through to high income earners, like doctors or lawyers.

While it is hard to imagine why someone with a high income would need to file for Bankruptcy, the reality is Bankruptcy is not about a person’s monthly income. It’s about the amount of debt a person has accumulated in relation to that income. Life happens to everyone and debt struggles occur at all income levels.

Myth 3: Bankruptcy is a personal failing

Perhaps the most damaging misconception focuses on the character of those that file for Bankruptcy. At MNP, we make no judgement or assumptions about the individuals we help. The Bankruptcy and Insolvency Act is a piece of legislation that aims to help honest but unfortunate debtors get a fresh start — and that is how we approach our work.

The people we see are struggling with financial stress which may be alleviated by the options available through a Licensed Insolvency Trustee. One of the most rewarding parts of our job is to help wonderful individuals find a solution that can eliminate their debt and allow them to start over. Most are grateful that we were there for them and move on to financial success in the future.

Let’s talk about your debt

If you find yourself in a situation where you’re considering Bankruptcy and need the support of a Licensed Insolvency Trustee, don’t let misguided opinions prevent you from getting help. If your friend or loved one confides in you about their debt struggles, help them to realize they’re not alone. Thousands of people have been through the Bankruptcy process and are glad that they did. Life happens and MNP is here to help you find the right solution to move forward.

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