The honest answer to this question is probably not…

It would be possible for your friends to find out if you went bankrupt but only if they went looking in the right places for the information.

A lot of people believe that those who need to file bankruptcy are lazy, irresponsible people who have gambled away their earnings. In reality, people who file personal bankruptcies are often average people like you and me who hit some unfortunate circumstances and couldn’t keep up with their finances as a result. The negative stereotypes associated with bankruptcy make some people afraid to do it in case their friends find out and they would be embarrassed.

Bankruptcy is a matter of public record and so it is recorded with the government and anyone can look it up online if they wanted. But why would somebody who is your friend go looking for that kind of information?

In general, the only way your friends will find out if you go bankrupt is if you tell them. Although it is public record, the fact that you have gone bankrupt is not broad-casted and all the information you give us is confidential.

The only exception is if your bankruptcy involves a large asset such as a company, then we are required to publish it in the local paper but at Hoyes, Michalos & Associates, we very rarely deal with these kinds of bankruptcies. For example if you had assets that held significant value that you’d lose in a bankruptcy, one way to avoid that problem, maybe to consider offering the creditors a consumer proposal instead.

If you are in financial trouble, you need to do something about it. Allowing the fear of embarrassment to stop you from filing a consumer proposal or personal bankruptcy will only make your financial situation worse. You can take the first step toward getting a fresh start by calling me today at 519-622-3773 or sending me an e-mail. I look forward to meeting with you in Cambridge and helping you make your plan for a fresh start!