When I started my career in helping people with debt, my first role was as a credit counsellor. I’m now a licenced Bankruptcy Trustee with Hoyes, Michalos and Associates and have been here for about five years. One thing that has remained the same for me this entire time is that virtually every person I meet with expresses how terrible they are feeling about the process and the guilt they carry over not being able to pay all of their debts.
When we borrow money, we do it with the intention of paying it back. It’s to help buy a car or home, to finance school or assist in an emergency. When a bank lends, it’s with the intention to profit, to give you some of their money today, with the plan to get more back later.
But, things change – jobs are lost, relationships end, business slows down, people get hurt or become ill. In these situations, it can be impossible to repay the money, and this is exactly why bankruptcy exists – to give that person the chance to move on, and become debt free. In addition, it’s an opportunity to learn to manage money differently, to improve on decisions from the past and to look forward. Part of the process involves two meetings with a licensed credit counsellor, to help you determine what you can do to avoid debt problems in the future. At the end of the process, you are discharged from your debts, and have a chance to start over.
It would be wonderful if every dollar borrowed could be repaid, in fact it would be great if you never needed to borrow at all. But, since borrowing happens, and then life happens, give yourself that opportunity to start fresh. Don’t feel guilty about filing bankruptcy, learn about what you can do to correct the problem. If you are carrying debt you cannot repay, contact a local bankruptcy trustee and book a free consultation, so that we can help you learn about all of your options.