At The Law Offices of Paul Y. Lee, we’ve worked with a lot of people who worry about declaring bankruptcy. They aren’t sure what the short-term and long-term results will be, they’re afraid it costs too much to file, or they worry that it’ll keep them from getting jobs. In fact, one question we get asked frequently during our free consultations is: Who will know if I declare personal bankruptcy? Read on to find out.
Why is this such a concern?
The reality is that filing for bankruptcy is very personal. There can be stigma associated with filing, which is most of our clients hope that the process will be discreet. We find time and time again that who will know about a bankruptcy filing is one of the biggest concerns people have as they seek out more information on the process.
Your creditors will be notified
No matter if you file Chapter 7 or Chapter 13 bankruptcy, the only people that will be notified are your creditors. In fact, the bankruptcy court sends out official forms that notify them you’ve filed. They’ll get this notice for one important reason: As soon as you file bankruptcy, you get an automatic stay on any and all debt collection, which means that they will no longer be able to try and collect from you. That means no more phone calls, no more letters – nothing.
This can actually make it more likely that your financial situation will be kept private. Unfortunately, many debt collectors won’t hesitate to call you at work, to discuss your situation with co-workers, family members, or even your boss. Once you’ve declared bankruptcy, you’re able to easily put a stop to all this harassing and possible privacy invading behavior.
It’s true that your bankruptcy will be public record
It is important that you understand that your bankruptcy filing will be public record. However, for someone to find out about the fact that you filed for bankruptcy, they’d have to go to quite a bit of effort. Bankruptcy records are available through a website run by the Federal Court System. In order for one to find bankruptcy records on it, users must apply for an approved ID and password. Once they have those, they must then pay fees to search for bankruptcy filings.
A person can also go to the bankruptcy courthouse in person to look through court records. Once again, this often comes with fees and it’s an incredibly tedious process. For anyone to find out you filed without you telling them, they’d have to already suspect it and simply be confirming it.
Your bankruptcy won’t be publicized
The bottom line is that though your bankruptcy will be public record, it’s not advertised in a newspaper. Remember that thousands of people file bankruptcy every day in the U.S. If you’re having financial problems that you can’t seem to get away from, don’t let your privacy concerns be the only reason you don’t call The Law Offices of Paul Y. Lee for relief.
