Filing for bankruptcy

What it is, dismantling the stigma, and how to recover from it both mentally and financially

- Shannon Manuel

BANKRUPCY IS A LEGAL PROCESS THAT

ALLOWS INDIVIDUALS AND BUSINESSES TO ADDRESS THEIR FINANCIAL STRUGGLES BY SEEKING RELIEF FROM THEIR DEBTS. It provides a structured framework for managing and, in some cases, discharging debt, offering a chance for a financial reset. While bankruptcy offers a fresh start, it also comes with important implications to consider. Bankruptcy will have a negative impact on your credit score and will remain on your credit report for several years. However, rebuilding your credit over time is possible through responsible financial practices. Depending on the type of bankruptcy, you may need to relinquish certain assets. However, there are exemptions that allow you to protect essential assets, like your home or car. Despite the initial challenges, many individuals find that their financial situation improves after bankruptcy. By managing finances responsibly and rebuilding credit, you can work towards future financial opportunities. Navigating the bankruptcy process can be complex, and seeking professional guidance is recommended. Attorney Simon Dippenaar from Simon Dippenaar & Associates Inc. explains the intricacies of filing for insolvency.

GQ: Can you briefly explain what bankruptcy is and its main purpose in the legal system?

SD: For the purposes of this article I am going to refer to any juristic person (a company and/or close corporation) as “a company.”