Bankruptcy is never something that we think will happen, however, depending on your debt, bankruptcy may be exactly what you need to get your life back in order. However, while bankruptcy can be the best solution for your situation, it can be embarrassing for some. To alleviate some of the embarrassment and social issues that come with filing for bankruptcy, here’s what can turn up in a bankruptcy search in Canada.
Find out who will have access to information about your bankruptcy and why they need to know.
If You File For Bankruptcy, Who Will Know?
According to Canadian law, including the Bankruptcy and Insolvency Act, there are several individuals or entities that are entitled to know about your bankruptcy status. The following entities can legally access your bankruptcy information because it may affect their interactions with you.
Bankruptcy Search In Canada By Future Lenders
This includes any person or institution that you try to get a loan or credit product. When you declare Bankruptcy, it’ll remain on your credit report for 7 years after you’ve been discharged. During that time, any lender that you apply with will be able to see you’ve declared bankruptcy when they check your credit. In the eyes of a potential lender, this typically makes you a high-risk borrower. This may affect your ability to borrow any amount of money.
Bankruptcy Search In Canada By Creditors
The creditors who you are working with when you file for bankruptcy will receive a detailed report from your bankruptcy trustee. If you apply for new credit after you’ve filed for bankruptcy those potential new creditors will also know about your bankruptcy because it is recorded on your credit report.
Bankruptcy Search In Canada By The Federal Government
The federal government maintains a list of individuals who are bankrupt in their bankruptcy records. Licensed Insolvency Trustees must submit a list of individuals who have filed for bankruptcy to the superintendent of the bankruptcy.
Bankruptcy Search In Canada By Credit Bureaus
The credit bureaus (Equifax and TransUnion are the two major bureaus in Canada) will automatically know about your bankruptcy. This is because they receive information from the Office of the Superintendent of Bankruptcy.
The credit bureaus record your bankruptcy on your credit report and anyone who has access to it will also know that you’ve filed for bankruptcy. This information typically remains on your credit report for 7 years and may affect your creditworthiness.
Does My Licensed Insolvency Trustee Notify Anyone Of My Bankruptcy?
There are certain parties that will be notified of your bankruptcy filing, while others will only be informed if you give permission.
Creditors
Once you file for bankruptcy, your trustee will notify your creditors. Your bankruptcy filing will also be noted on your credit report, which will remain on your records for 7 years following discharge. Since creditors have access to your credit report when you apply for a loan or credit product, they will see that you have filed for bankruptcy in the past.
Office Of Superintendent of Bankruptcy (OSB)
As mentioned, the Office of Superintendent of Bankruptcy (OSB) will also be notified of your bankruptcy. Anyone who searches the OSB’s bankruptcy registry will see that you have filed for bankruptcy, though this registry only provides limited information about your filing.
Employer
Your employer will only be notified of your bankruptcy if you want them to know about your situation. For instance, you may want your trustee to inform your employer about your bankruptcy if your wages have been garnished as a result. In this case, your trustee may try to stop the garnishment.
Will My Bankruptcy Be Published In The Newspaper?
No. Information about your bankruptcy is kept private, and only those who are privy to this information — such as your creditors — will be notified. However, a newspaper may publish a legal notice of your bankruptcy if you’re someone with substantial assets. This generally refers to businesses and individuals with high net worth.
Can You Prevent Anyone From Knowing You Filed Bankruptcy?
Unfortunately, the issue with bankruptcy is that it’s public record, the reports that the Office of the Superintendent of Bankruptcy keeps are open to the public. This means anyone who really wants information about you can find it and it’s essentially impossible to stop them.
While we understand that this may seem like it’s a violation of your privacy, in general, there aren’t many people who are willing to go through public records just to find out that you’ve filed for bankruptcy.
How Can You Find Out If Someone Filed For Bankruptcy?
As mentioned, the OSB’s bankruptcy registry will have limited information about a person’s bankruptcy. If you want to find out if someone has filed for bankruptcy, you can pay a small fee to have the board search for records of a particular person.
To find someone on the registry, visit the OSB’s website and create an account. Enter as much information about the person that you can, such as their name, age, and location of bankruptcy filing. Each individual search costs $8, regardless of whether or not you find what you’re looking for.
Keep in mind that you cannot randomly search for people using the online OSB’s registry. You must know exactly who you’re looking for to use the tool.
What Can People See When They Perform A Bankruptcy Search In Canada?
Anyone who is searching for your bankruptcy history in the Bankruptcy and Insolvency database will see the following information about your records:
- Record of all bankruptcies registered since 1978
- All recorded petitions
- Receiverships registered since 1993
- Businesses that were granted protection under the Companies Creditors Arrangement Act (CCAA) since September 2009
Avoid The Myth Of Bankruptcy
Depending on who you’ve been talking to you might have one of two extremely different points of view about filing for bankruptcy. Typically people either believe that bankruptcy will either ruin them financially for the rest of their lives or that they’ll be able to recover quickly. Neither is technically true.
Bankruptcy won’t ruin your life forever, but it’s not easy to recover from either. It falls somewhere in between the two and usually depends on the person and what state their finances are in.
However, it’s not impossible to recover and countless individuals have been able to recover from bankruptcy and move on to live successful lives. It’s really up to you and how you deal with the situation; we always suggest seeking professional help should you feel like you can’t handle bankruptcy on your own.
Bottom Line On Bankruptcy Searches In Canada
Considering the above information, if bankruptcy is the best option available you, you should not let potential embarrassment prevent you from taking back control of your life and your finances. Always exhaust all other options before you file for bankruptcy, while it’s an option that many people need to take, if it can be avoided, it should be.
