discretion

October 13th, 2011 by Questions

Who finds out when you declare bankruptcy? I have heard that it gets put in the newspaper and that the trustee will notify your landlord (even if your rent is up to date) and employer. is that true?

Posted from: Ontario

Questions

One Response to “discretion”



, A licensed trustee said:

Legally, the filing of bankruptcy is a matter of public record so it is possible for anyone that wants to know if you have filed for bankruptcy to find out.

The reality is that with the exception of your creditors, no one is really interested. There will only be an ad in the newspaper if you have assets worth more than $15,000 after all secured detbs have been paid off. In the 4,000 files our firm has handled in the last 12 months I think this happened in 3 cases.

Your employer should only be contacted if someone is garnisheeing your wages – your trustee will have to contact your employer to stop the garnishee.

Aandlord would only be contacted if you had significant rent arrears – if this was the case you’d probably be advised to move BEFORE you file so the arrears could be cleaned up with all of your other debts.

Thaks for asking the question – there is a lot of misinformationabout bankruptcy out there and unless you ask, you won’t know what is true…

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