Most of us don’t talk about our personal finances. It’s one of the last subjects we speak openly and honestly about. But when bankruptcy is considered the first thing everyone one asks is – ‘Who will find out about my bankruptcy’?
When you file an Assignment in Bankruptcy it is public information. The Industry Canada website will have the record that you have filed. However, it’s not likely that the public (or your family and friends) will find out. To access that information someone would have to put your name in a search at the Industry Canada website. Each name searched costs eight dollars.
Will my boss or co-workers find out?
Again, probably not unless you already have a garnishment of your wages. If that is the case your employer will receive a stay of proceedings so that they won’t be able to garnish your wages any longer.
When you file an Assignment in Bankruptcy your Trustee isn’t going to tell anyone unless they need to. Your creditors will need to know and will be told that you have filed.
When Does a Notice in the Newspaper Appear?
There are two kinds of personal bankruptcies an individual can file:
1) Ordinary administration bankruptcy
2) Summary administration bankruptcy
The bankruptcy and insolvency act requires a trustee to place a notice in the local newspaper if the amount of money coming into the estate is going to be in excess of $15,000. This is to make sure that anyone who is owed money gets a chance to file a claim in the bankruptcy. This is called an Ordinary administration bankruptcy.
But most people file a summary administration bankruptcy where the amount of money coming into the estate will be less than $15,000. In this case a bankruptcy notice is not placed in the newspaper.
A Fresh Start
A personal bankruptcy allows you, the honest debtor, to start over with a clean slate. To get back on track and start to save for a secure financial future. There should be no shame in using the Canadian bankruptcy legislation for this purpose.