Will My Friends and Family Know I Went Bankrupt?

Will My Friends and Family Know I Went Bankrupt?

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

You may have seen ads 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 go through what is called a Summary Administration.  This is a streamlined process for individuals who have less than $15,000 of equity in an exempt assets or non-exempt assets.   In these circumstances no notice is published in the newspaper.
  2. If you $15,000 or more of equity in an exempt or non-exempt asset your bankruptcy would be administered as an Ordinary Administration.  This would require 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 aConsumer Proposalto 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 accessible for a fee but how many people, other than bankruptcy trustees, would incur the expense or even think or know where to look? 

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

If you are struggling with debt, and have been avoiding help out of fear of embarrassment, contact the licensed professionals at Powell Associates Ltd. for a free, confidential assessment.  We will review your circumstances and help you find the solution that is best for you.  We can meet with you in person or by phone from our offices inSaint John, Moncton, Fredericton andCharlottetown.

Powell Associates Ltd. is a licensed insolvency trustee focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses.