This is a common concern among clients who are considering bankruptcy. Many people are embarrassed that they have let their debt get out of hand and want to deal with it as quietly as possible. 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.
Summary Administration.
The majority of people go through this streamlined process. It is 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.
Ordinary Administration. If you have $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 friends and family will most likely not search these records. Even though they are a matter of public record, chances are very high that your family and friends won’t see it. So, unless you tell your family and friends, it’s likely your bankruptcy will remain confidential.
If you’re struggling with debt, contact us today for a free initial consultation. We’re here to help
