Filing Bankruptcy in Red Deer – Will Everyone Know about My Financial Trouble?
We live in a time when financial success is seen by many as the ultimate measure of life achievement. Some of us define ourselves not by who we are, but by what we own. This puts anyone in financial trouble who buys into that view in a very difficult position. Evaluating a debt solution for their troubles has the added burden of ensuring no one will know of our troubles if we adopt that solution. Some believe filing bankruptcy in Red Deer will become public knowledge.
Unscrupulous debt collectors use this issue of bankruptcy becoming a matter of public record as a scare tactic. It is one of the few they use that is factually based. Filing bankruptcy in Red Deer does result in a permanent record of the filing with the Office of the Superintendent of Bankruptcy (OSB). The record is permanent as a means of tracking multiple bankruptcy filings, which some Canadians actually do.
For the average resident of Red Deer, this public record is meaningless. If, however, you someday become a famous politician, the record will be there for some enterprising journalist to dig up.
The fact is there are only three parties that will get automatic notification of your bankruptcy filing – the OSB, your creditors and the major Canadian Credit Bureaus (TransUnion Canada and Equifax Canada.)
Your employer will know nothing unless your wages have been previously garnished or your job requires licensing or bonding that prohibits bankruptcy filers from employment. These jobs are typically in the financial industry and involve transactions with other people’s money.
Some residents have seen notices of bankruptcy filings in the local newspapers and believe all bankruptcy filings are published. This is not true. Again, filings of the rich and famous can make the newspapers. In addition, a notice of a bankruptcy is advertised in the newspaper when it is an “Ordinary” Administration, most personal bankruptcies are filed as a “Summary” Administration. It will be filed as an Ordinary Administration when the trustee is expecting $15,000 or more to be paid into the estate (through sale of non-exempt assets or surplus income). When a business makes an assignment into bankruptcy it is also filed as an Ordinary Administration.
In summary, if you have been having nightmares where an evil government bureaucrat hangs a bright red sign emblazoned with the phrase GONE BANKRUPT on your front door, stop worrying. Beyond the parties we already mentioned, no one will know about your financial troubles if you declare bankruptcy in Red Deer unless you tell them.
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