Filing for Bankruptcy can feel overwhelming, especially given the persisting stigmas. Rarely does anyone share their financial troubles openly, much less when it involves Bankruptcy.

This stigma is often what prevents people from exploring Bankruptcy as an option, or from seeking help. It’s important to know that simply seeking out help for your finances won’t compromise your privacy.

The people who need to know

The potential for others to learn of your Bankruptcy should not stop you from getting the help you deserve to get your finances back on track. If you find yourself in this stressful situation, only a limited number of people will learn about your Bankruptcy as part of your journey back to financial wellness. 

So the question is, "Who needs to know?"

Your Licensed Insolvency Trustee

Don’t be afraid to share your full financial pictures, with a Licensed Insolvency Trustee. An MNP consultant or advisor can help evaluate your situation and determine the best course of action. If Bankruptcy does make the most sense for you, your trustee will guide you through the entire process until you’re discharged from your Bankruptcy and back on the track to full financial freedom.

When it comes to sharing information about your finances, working with an insolvency trustee is similar to working with an account manager or therapist. Your information remains strictly confidential, and any details shared are kept between you and your trustee.

Your creditors

The trustee will notify all your creditors to ensure they are aware that you are no longer liable for the debts owed to them. By default, they will be aware of your Bankruptcy and involved throughout the process.

By working with a Licensed Insolvency Trustee, you won't need to interact with your creditors directly. All future communications will be handled by your trustee.

Office of the Superintendent of Bankruptcy

The Office of the Superintendent of Bankruptcy (OSB) is a federal agency in Canada. They exist to regulate the processes and professionals as they relate to filing for Bankruptcy or submitting a Consumer Proposal.

The OSB is notified primarily to protect your interests. Their role is to oversee insolvency practices and ensure trustees follow procedures and laws.

Canada Revenue Agency

As part of the Bankruptcy process, your trustee is required to file certain tax returns on your behalf. Consequently, the Canada Revenue Agency (CRA) is informed through this process. People are often concerned that the CRA knowing about their Bankruptcy will result in more people knowing.

For example, there’s a concern this information will trickle down to current and potential employers — but this information is kept private.

What about your employer?

Many people prefer to keep their financial status private from employers, especially regarding Bankruptcy. Fortunately, your employer will not be notified of your Bankruptcy, unless they are also a creditor.

If your employer also happens to be a creditor in your financial situation, then they will be informed as any other creditor and dealt with by your Trustee throughout the process. If your employer is not a creditor, then they won’t know unless you decide to tell them.

No one else needs to know — unless you want them to

When asking who will know about your Bankruptcy, the quick answer is: only those directly impacted. Only those people and parties who are involved in your Bankruptcy as listed above will need to know. Now, you may choose to share that information with others, but that choice will be up to you.

The most important thing is that the concern about who will learn of your Bankruptcy should not stop you from seeking the necessary support to address your debt issues. Ultimately, the matter remains confidential between you, your trustee, and those you choose to share your information with.