Most debtors that attend my office for a free initial consultation to discuss filing a personal bankruptcy are embarrassed and ashamed that they cannot pay back their debt. 

They don’t want their family, friends or employer to find out that they filed bankruptcy. So, who does have to know that you filed bankruptcy to relieve yourself from debt?  

  • your Licensed Insolvency Trustee is obligated to send notices of your bankruptcy to all your creditors and collection agencies acting on their behalf
  • the documents are filed with the Superintendent of Bankruptcy who retains a public record of all filings
  • the two credit bureaus, Equifax and Trans Union, obtain information on your bankruptcy filing from the Superintendent of Bankruptcy and reports the filing on your credit report for 6 to 7 years from your discharge
  • if court proceedings have been commenced, the trustee will notify the court
  • if someone owes you money, your trustee will be obligated to contact them to advise of the bankruptcy and to collect the funds
  • if you jointly own an asset with someone else, the trustee may have to contact the other party to realize on the asset (or you may settle directly with the trustee)
  • your employer does not need to be notified by the trustee if you make your monthly surplus income payments, if any
  • Canada Revenue Agency is notified as the trustee will file your tax returns
  • If the value of your realizable assets is greater than $15,000, then a notice must be published in a local newspaper
  • If you made a preferential payment (large payment to one creditor in preference to all your other creditors), your trustee may have to contact that creditor
  • If you transferred an asset to another person for less than the fair market value, your trustee may have to contact that person

Filing a personal bankruptcy may not be as public as you thought and can provide a fresh start from overwhelming debt. Contact Fresh Start Now, Taylor Leibow Inc. to discuss your situation personally with a Licensed Insolvency Trustee.  

By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Member and Secretary of the Ontario Association of Insolvency and Restructuring Professionals (OAIRP)
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)