Are Personal Bankruptcy Filings Public Record?

_{By Bromwich+Smith Staff | 331 words | Reading Time: 1 minutes and 39 Seconds | Date: 2022/05/20}

To consider bankruptcy can be incredibly difficult and overwhelming. However, it alleviates and helps many in conquering their debt and rebuilding their worth. It is important to note that when you file for bankruptcy you are taking a great step towards managing your financial future. 

Although a bankruptcy and a consumer proposal are a matter of public record the only people that will know you have declared bankruptcy are you, your Licensed Insolvency Trustee and those you owe money to. It is against the bankruptcy rules of Canada for a trustee to disclose confidential information regarding a bankruptcy unless they are required to do so by law or you have consented to having them share this information. 

Who is notified?

After you have declared bankruptcy, your Licensed Insolvency Trustee will notify your creditors and the Office of Superintendent of Bankruptcy (OSB). A note is then put on your credit report by the creditors and the OSB. A bankruptcy stays on your credit for 6 years after you have finalized your bankruptcy or 14 years if you have previously filed a bankruptcy. A consumer proposal will remain for 3 years after you have completed all proposal payments, or 6 years from the date of file whichever date comes first. 

Your employer will not be notified of your bankruptcy filing unless you want your trustee to let them know. In the case of wages being garnished you may want to let your employer know so that the garnishment can be stopped. As the legal protection of a bankruptcy or proposal goes into effect immediately on the day you file. 

In the end, declaring bankruptcy is only discussed with you, your Licensed Insolvency Trustee, creditors and those you wish to inform. 

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