Who will find out about my Bankruptcy?

So, you’re considering Bankruptcy. And you’re probably asking yourself, among other things, who would be informed about this? Who else will know?

This is a completely normal and valid concern. Fortunately, in most cases, that information will remain confidential. However, there are certain people and organizations who will be notified. 

Let’s take a look at who you may be curious about:

Are there any official groups or individuals who will be informed?

There are certain individuals and agencies that will be notified as soon as you declare Bankruptcy. Those include:

The Office of the Superintendent of Bankruptcy (OSB): This federal agency oversees all Bankruptcies in Canada. Once you file Bankruptcy, the OSB adds your file to its public records. The OSB will send their list of Bankruptcies to credit bureaus, like Equifax or TransUnion, to be noted on the credit histories of consumers.

Your creditors: Any organizations or individuals you owe money to will be made aware of your filing.

Your Licensed Insolvency Trustee (LIT): This individual will be your guide throughout your debt management and Bankruptcy process. They will act as the go-between for you and your creditors.

Will it be posted anywhere for the public to see?

Yes, your Bankruptcy will be recorded in the OSB’s public Bankruptcy and Insolvency records. Will people see it? It’s unlikely — it's mostly accessed by financial institutions and industry professionals.

So, despite its name, the public register isn’t so public.

Will my work know?

In most cases, no. However, there are a few exceptions to this:

• If your wages are currently being garnished and Bankruptcy ends this garnishment, your employer will be informed.
• If your job requires a credit check, this may reveal your Bankruptcy.

Will my friends and family find out?

Unless you tell them, they won’t know. That being said, if you are in debt to a loved one and they are listed as a creditor, they will receive notification that you’ve filed Bankruptcy.

Will my bank know? Will this impact my credit rating?

Since your Bankruptcy will be listed on your credit report, any financial institutions — like banks or lenders — will see this information when they consult your file. Once you’ve been discharged from your Bankruptcy, it’ll take about six years for it to not show up on your credit report anymore.

Here for you every step of the way

In a nutshell, Bankruptcy isn’t as public as you may believe it to be. Apart from the people and organizations involved, no one will know unless you decide to share it with them. Our LITs can offer any additional reassurance and practical guidance you may need to help make big decisions about your journey to debt relief.

Reach out today for a free, confidential consultation to discuss your needs.