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Most people who go bankrupt go into debt by borrowing for normal consumer items and living incrementally beyond their means until it suddenly becomes a problem when their current situation changes for the worse. Despite what others, or even you, may think, bankruptcy is not an “easy” way out of debt.
If you borrowed money through a loan or credit card, were truthful about your financial situation on the application, and had every intention of paying it back, then you should not feel guilty. Circumstances can change and human beings can often make decisions based on hopeful scenarios, rather than current reality.
The other aspect is that the companies that lent you money made a business decision to do so. They evaluated the risks and figured that, statistically, you were likely to make them a profit. In fact, if they considered your financial picture a bit riskier than the norm, they would have attached higher interest rates to your loan (and the loans of people with a similar credit rating) so that the potential for profit outweighed the potential for loss.
Finally, while most people who go bankrupt feel very bad about not paying their debts, you may already have paid back most if not all of the original amount you borrowed, if you have been making payments for a few years, you’ve probably paid as much in interest as the original sum. The lender simply loses the profit that they hoped to earn on the loan.
IN THIS SECTION
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- Why did my trustee tell me to file all outstanding tax returns?
- I’m declaring bankruptcy because of taxes. Is this allowed?
- Will I still owe my student loan after bankruptcy?
- I can’t afford to pay back my student loan and it’s been less than seven years since I left school-what are my options?
- How long does bankruptcy last?
- Can I keep my car during bankruptcy?
- Can I keep my RRSP during bankruptcy?
- Can I keep my home if I declare bankruptcy?
- Will I still be able to rent an apartment or home if I declare bankruptcy?
- Can I keep a credit card during bankruptcy?
- Is it okay to use a credit card if I am thinking about bankruptcy?
- Can I get a checking account after bankruptcy?
- I co-signed on a loan for someone who declared bankruptcy. What happens now?
- If I’m married and I file for bankruptcy, does it affect my spouse’s credit?
- If my spouse declares bankruptcy and I am listed on their credit cards, am I responsible for the debt?
- I am divorced and my ex has declared bankruptcy. Do I still owe for debts and credit cards that I co-signed with my spouse?
- If I file for bankruptcy, will it be noted on my spouse’s credit file?
- Will filing for bankruptcy affect my job situation?
- Who will find out about my bankruptcy?
- Can I get utility services (telephone, cable, hydro, gas, etc.) after bankruptcy?
- Can I keep any money if I declare bankruptcy?
- What is surplus income?
- Can I go to jail for not paying my debts?
- The collection agency is threatening to take me to court: can they do that?
- What happens if a collection agency takes me to court?
- I am behind on my debt payments; can a collection agency take my furniture, electronics, clothes, etc.?
- I am being harassed by a collection agency: what can I do?
- Can I stop a wage garnishment?
- How do I find out if someone is bankrupt?
- What is Chapter 7 bankruptcy?
- What is Chapter 13 bankruptcy?
- What happens if I live in both Canada and the U.S. and declare bankruptcy?
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