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.
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 asset or non-exempt assets. In these circumstances, no notice is published in the newspaper.
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 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 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 a friend, family or co-workers.
Powell Associates Ltd. is a Licensed Insolvency Trustee (LIT) focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses. We offer free consultations to review your personal financial situation and practical debt resolution options. Contact us to discuss your situation over the phone or book an appointment to meet us face-to-face in Saint John, Moncton, Fredericton, Charlottetown or Dartmouth - it's your choice