I did a lot of things that I regretted and I certainly paid for my mistakes. You have to go and ask for forgiveness and it wasn't until I really started doing good and doing right by other people as well as myself that I really started to feel that guilt go away. So I don't have a problem going to sleep at night.
The way to work with a bully is to take the ball and go home. First time every time. When there's no ball there's no game. Bullies hate that. So they'll either behave so they can play with you or they'll go bully someone else.