Not that I have stats but no, I don't agree. It is a fresh start but that's at least a seven year road with a ton of pot holes. Claiming bankruptcy could be a long term problem, it could mean they are entering a desperate time in their life, will the steal bread to feed their family?
People will fight bankruptcy because they see it as claiming they've failed financially, they now need a cosigner for a monthly cell phone, can't get a credit card and book a hotel or rental car. Yes its a new start but its not all peaches and cream.
Keep in mind this doesn't mean someone will be denied based on that alone. They don't follow up with "If your bankrupt do you think spending your money on ammunition is wise? Have you kids eaten? Wait how are you going to buy a gun?"
I understand your points, but there certainly are a lot of misconceptions out there. It's not a seven year road with a ton of potholes. Yes, it appears on your credit bureau for seven years, but it only really impacts a person negatively (within reason) for the first two. Most people are automatically discharged within 9 months of filing (unless it's not your first time or you make too mcuh money), and credit rebuilding starts there. The day you're discharged, you are legally debt free, you can get a credit card (guaranteed), so that eliminates the credit card, booking a hotel, rental car issues right there. And, if I'm not mistaken, phone service is now considered a necessity (categorized as a "utility" in the Canada Bankruptcy Act with the likes of heat, power, water), and therefore cannot be legally refused - although I'm certain that providers would try to refuse you and hope you don't push the issue.
To add to that, bankruptcy trustees are now guaranteeing a mortgage approval within 2.5-3 years of discharge with the same rates you and I can get. Yes, I believe a lot of people would likely feel they've failed financially, but if you're in a position where filing bankrupcty is a seriously considered option, there's not much further down to go. Filing stops the harassing calls and letters from credit collectors (which only add to the stress of already being financially screwed). It also stops you from feeling obligated to make payments on debt you can't afford when buying groceries is more important. So, financially speaking (and any trustee will likely tell you) filing is the turning point for many. Less stress, more money to live on, and a fresh start. Once that person has received their official automatic discharge, you can only go up. I can see CFC being concerned with someone who is
IN bankruptcy, but not someone who has already gone through the process, paid their fees and fulfilled their obligations of the bankrupcty process and been discharged.
Now, I understand not everyone likely has this view, but from my experiences with the people I know who've gone through it, this is the way it is (Alberta at least, although the bankruptcy act is federal). It's definitely not all peaches and cream, but it's a process that exists because it's better than the alternative (which
would be suicide or depression). Unfotunately for many, filing isn't really an option. Divorce and child custody battles are the most common reasons people file. Some are forced to file from being idiots with money, but not the majority. Just my two cents. I'll stop rambling now.
