Who Will Find Out That I Filed Bankruptcy in Canada?
Most of the Bankruptcy in Canada originates from the many causes and factors of why individuals end up filing for bankruptcy. Most of these situations are beyond man’s control; the primary reason why bankruptcy shouldn’t be something that will make you feel embarrassed. If your situation does not qualify for the other debt relief options, then filing for bankruptcy is what you need. Though this guide, you will know about the privacy and dissemination of information in bankruptcy.
Who Has The Right To Know?
Following the Bankruptcy and Insolvency Act, and the other Canadian bankruptcy laws, certain individuals must be entitled to know regarding your bankruptcy. Such individuals are listed as follows:
The federal government
Your licensed bankruptcy trustee will report your bankruptcy to the office of the Superintended of Bankruptcy. This what makes bankruptcy different to debt settlement where in your settlement will not be reported to the said office. However, during a debt settlement, the amount of debt that is arranged is taxable and will be reported to the Revenue Agency of Canada. Moreover, your official bankruptcy records will be kept by the federal government.
The credit reporting agencies will receive information from the Office of the Superintendent of Bankruptcy about the new bankruptcies every month. The Credit bureaus then record your bankruptcy, which will be evident in your credit report for 7 years. This will trigger you from not getting a loan at a low-interest rate as it has damaged your credit repute.
Creditors and lenders will likely receive a report about your bankruptcy, which is disseminated by your trustee. So, when your bankruptcy hasn’t been recorded in your credit report, creditors who offer you a loan will likely consider your application but will record your bankruptcy with your credit application.
Potential lenders of creditors must be informed that you’re in bankruptcy if they will consider your credit application for at least $500 or more. This is regardless of whether the creditor is a friend or one of the members of the family.
Tabloids or newspapers may get a legal notice of your bankruptcy, especially if you have highly valuable assets. However, if your assets are not highly valued, you will not get more of these circumstances.
Who Will NOT Find Out about Your Bankruptcy?
In reality, you cannot prevent your misfortune to be known by anyone. This is true to an individual who is fond of hunting bankruptcy records of the public. If someone has an interest in finding out your credit repute, they can gain access to your bankruptcy. This is because bankruptcy is considered a public record.
Therefore, it is almost impossible for you to keep your records private. However, this is rarely unlikely to happen apart from your creditors and some employers who might seek your creditworthiness.
Keep Matters Fully Private
You can prevent bankruptcy by seeking the other debt solutions available for you. You can still try to seek help via a consumer proposal, debt settlement, consumer credit counseling, or debt consolidation. This way, you can prevent further damage that may linger when filing for bankruptcy.
On the contrary, f you have exhausted all means to get from your indebtedness, bankruptcy is what’s left for you. You just need to be prepared physically, emotionally, and financially on the cost that it yields.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.