Do People Know if I Filed Bankruptcy
Who will know that I have filed an Assignment in Bankruptcy? We have all seen the notices in the legal section of newspapers notifying creditors about a bankruptcy and notifying everyone about an upcoming meeting of the creditors. The reality is that this only happens in corporate bankruptcies or very large personal bankruptcies usually which have a business background to the bankruptcy. A bankruptcy of an individual is known as a summary administration. The creditors are notified by regular mail. Assets under a summary administration are minimal and notices in a newspaper and meetings with creditors are rare. A bankruptcy is, of course, filed in court but nobody spends their time searching court files and public records to find out information about you. The exception, of course, is the credit bureau (Equifax or Trans Union of Canada) which keep a record of the bankruptcy on their system for a period of six years. Friends and family are unlikely to find out that you filed bankruptcy – unless they need to know. Your employer is only informed if a creditor attempts to garnishee your payroll. Your trustee can usually stop the garnishee but that involves sending a letter to the creditor, the court and someone in the payroll department of your employer. You can keep the notice to your employer confidential by providing your trustee with the private email of someone in authority in the payroll department or by delivering the trustee’s notice by yourself.
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their credit cards. They know that men and women have only a certain amount of room in their wallet or purse for credit cards. It is a race to be one of those cards. They push the instant credit available on the card. Use the card to upgrade your lap top, pay the balance owing on your tuition or buy better supplies. The banks do not care. The interest rates on the cards are high. The banks want to train the students to pay only the minimum monthly payments rather than paying off the credit card in full each month. That is how the banks make money. Later on when the student graduates and gets a job, the bank will increase the credit limit on the card to induce the former student to buy even more “stuff” such as a new TV, better computer, even their own apartment (with the new furniture that is required). Now the balance owing on the credit card is so high that option of paying off the balance in full no longer is possible. The minimum monthly payment becomes a way of life. The banks love it!