Shawn Stack, a Licensed Insolvency Trustee, wished to see how Canadians view debt—notably, how they view chapter. That’s why he commissioned Angus Reid to conduct the 2026 Debt & Ethical Notion in Canada examine. As we dig into the findings of the examine, we see a transparent sample: Canadians have a tendency to evaluate chapter harshly—till somebody they know personally goes via it.
The cruel public view of insolvency
The latest on-line examine requested over 1,500 Canadians to agree or disagree with statements about chapter and monetary accountability. Provided that so many individuals are fighting excessive prices of residing and that 44% of Canadians agreed that declaring chapter is a legit strategy to remove debt, you would possibly assume that respondents have been extra empathetic.
The outcomes confirmed a really totally different prevailing perspective. 41% stated chapter was a results of poor private selections and 41% agreed that declaring chapter breaks monetary guarantees. Over a 3rd of respondents additionally agreed that individuals who declare chapter are untrustworthy (37%) and will face penalties earlier than having their money owed discharged (40%).
Greater than half (51%) of respondents stated that individuals who had declared chapter ought to have restricted entry to credit score going ahead. Provided that extra individuals view chapter as a legit monetary determination in comparison with those that suppose it’s a loophole, these outcomes are stunning.
“We now have constructed an economic system that runs on credit score—on utilizing tomorrow’s potential to maintain at present’s appearances. After which we disgrace the individuals who fall via the cracks of a system all of us take part in. The information exhibits that Canadians know one thing is off.”
—Shawn Stack, Licensed Insolvency Trustee
What the empathy hole reveals: Summary vs. private judgement
Asking for summary attitudes supplies very totally different responses than asking about individuals they know. Trying again on the summary attitudes exhibits that 41% of respondents believed chapter to be an ethical failure, an indication of untrustworthiness, and a damaged promise.
However, when requested whether or not they would view a detailed pal or member of the family otherwise after a chapter, solely 23% stated they might. That’s an virtually 20-point hole solely primarily based on empathy and understanding of what somebody goes via.
Generational divides
Generational attitudes are even clearer, with round half of Boomers (47%) saying chapter is a loophole and a damaged monetary promise (51%). It’s additionally telling that 52% of Boomers would help monetary penalties earlier than granting debt elimination via chapter.
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Alternatively, solely 21% or 33% of Gen Z (these ages 14 to 29), see chapter as a loophole or damaged monetary promise, respectively.
These monetary attitudes are the results of rising up in very totally different economies. Gen Z is coming into maturity throughout a time of excessive total prices and low stability. Naturally, this setting encourages borrowing.
As Stack says, “The generational divide alone tells you the story is altering. However empathy alone isn’t a coverage. Till we separate the authorized strategy of insolvency from the ethical verdict we’ve hooked up to it, we are going to preserve punishing individuals for doing precisely what the regulation permits them to do.”
Gender divides
Though not as massive because the generational divide, the gender divide continues to be noticeable. Males have been extra prone to view chapter as a private failing (45%) in comparison with ladies (37%). Males have been additionally extra prone to agree that individuals ought to expertise penalties earlier than debt is eradicated via chapter (43%, in contrast with 37% of ladies).
That stated, there was little distinction in attitudes when requested whether or not they would view a detailed pal or member of the family otherwise after that particular person filed for chapter. Solely 24% of males and 22% of ladies stated they might.
The underside line
Public notion of chapter shifts when individuals take into consideration somebody they know. They are typically extra empathetic and understanding, probably as a result of they see the day-to-day monetary pressures that their associates or household are going through.
What stands out is how shortly that empathy fades when chapter is considered within the summary. The findings level to a necessity to border insolvency as a device for monetary restoration, not an ethical judgment.
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