Will Everyone Know about My Financial Trouble if I File for Edmonton Bankruptcy?
Every day we deal with distraught residents in deep financial troubles that come in ready to declare an Edmonton bankruptcy. In many cases, a wage garnishment drove them to their decision. While a garnishment undoubtedly adds to the financial burden, for many people it can also be emotionally stressful.
It is embarrassing to be called into an office somewhere at work to be told the company has received a legal notice they would have to begin garnishing your wages. There are many things about bankruptcy that concern potential filers and wondering whether everyone they know will learn of their financial trouble is often at the top of the list.
The short answer to the question will everyone know about my financial trouble if I file an Edmonton bankruptcy is no. With a few exceptions, the only people who will know are those you choose to tell. What are the exceptions?
When your bankruptcy trustee files the paperwork, an official notification is placed in a permanent record with the federal Office of the Superintendent of Bankruptcy (OSB.) The creditors you listed on the paperwork are notified as are Canada’s two major credit reporting bureaus – TransUnion Canada and Equifax Canada.
The credit bureaus keep the bankruptcy notification for six or seven years (depending on the bureau.) However, the OSB maintains the record forever, primarily as a means of tracking multiple bankruptcies. It may seem hard to believe, but some Canadians file bankruptcy a second and even a third time.
Your employer will only know in two instances. The first and more common one is when your wages have been garnished. They get legal notification to lift the garnishment. The second is in the very rare cases when the debtor’s job – usually in the financial industry where managing public money is part of the job – involves licensing or bonding requirements that prohibit bankruptcy filers from employment.
The final exception relates again to the fact a bankruptcy filing is part of the public record. If fame and fortune smiles on you at some time in the future, some journalist or Internet blogger somewhere might think the public at large would be interested in the fact you declared bankruptcy earlier in your life.
While you have probably seen gossip items about a bankruptcy from different celebrities, have you ever seen one about an average citizen?
In addition, a notice of a bankruptcy is advertised in the newspaper when it is an “Ordinary” Administration, most personal bankruptcies are filed as a “Summary” Administration. It will be filed as an Ordinary Administration when the trustee is expecting $15,000 or more to be paid into the estate (through sale of non-exempt assets or surplus income). When a business makes an assignment into bankruptcy it is also filed as an Ordinary Administration.
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