Will My Friends and Family Know I Went Bankrupt?

One of people’s greatest fears about filing personal bankruptcy is that their friends and family will find out and somehow think less of them because of it.

You may have seen a notice published in the “legal notices” section of the newspaper informing creditors of a consumer’s bankruptcy. These notices are not standard for all bankruptcies. Most people do not realize that there are two types of bankruptcy administrations.

1. The majority of bankruptcy files are Summary Administration. Summary Administration files are a streamlined process for individuals who have less than $15,000 of equity in their assets. In these circumstances, there is no notice published in the newspaper.

2. If you have $15,000 or more of equity in your assets, your bankruptcy will be an Ordinary Administration. An Ordinary Administration requires your bankruptcy trustee to call a mandatory meeting of creditors and publish a notice in the newspaper.

 In some cases, it may be possible to structure a Consumer Proposal to pay equity in assets and avoid the need for a published notice.

Bankruptcy filings are a matter of public record and are kept on file with the Government of Canada through the Office of the Superintendent of Bankruptcy. These records are available for a fee, but who would incur the expense or even know where to look?

Your bankruptcy and personal information will likely remain confidential unless you choose to share your story with a friend, family or co-workers.

Powell Associates Ltd. is a Licensed Insolvency Trustee. We are experienced, hands-on insolvency practitioners who understand the personal impacts of major financial stress;

• You won’t be stuck in an assembly line process.

• You will expect and receive prompt responses and resolution of issues from our supportive and experienced team.

• We will review your debt solution options, including filing a consumer proposal or personal bankruptcy.

• We help Canadians with overwhelming debt get fresh financial starts.

Once you file a consumer proposal or personal bankruptcy, we deal directly with your creditors on your behalf. Your unsecured creditors are required to stop contacting you or continuing legal proceedings against you. Contact us for a free consultation.

We offer free consultations to review your financial situation and practical debt resolution options. Contact us to discuss your situation over the phone, a video chat, or in-person in Saint John, Moncton, Fredericton, Charlottetown, Dartmouth, or Miramichi.