One of the main things on people’s minds when they have the difficult decision of filing for bankruptcy is who might get to know. Will their family find out?Will their employers find out? These concerns can do much to distress an already anxious person with serious financial concerns. What are the facts?
Who Gets to Know?
When you file for bankruptcy any creditors that you have will need to know that you have done so. Your ability to repay loans is affected, so they will surely be notified. Of course, any present in the bankruptcy court will get to know including any trustees that you have been assigned to help you through the process.
What About My Friends?
Any filing for bankruptcy is a matter of public record so, if someone is determined enough to find out if you have filed for bankruptcy, this can be achieved. It is not an easy process, but it is possible to find out if someone has filed for bankruptcy even if you have nothing to do with the case. Any family or friends that you have asked to co-sign a loan will be notified. Any potential employers may also try to find out your credit score, but they are prohibited by law from discriminating against you on this basis.
What About the Press?
If you are a public figure, your name may be noticed on documents as they pass through administration processes. It may be publicized that you have filed for bankruptcy. Some towns list filings for bankruptcy in the general newspaper announcements page among births, deaths, marriages and divorces. It may be possible to file in another district to keep your bankruptcy filing more confidential and at least out of the press. Evidence that you have filed for bankruptcy will be visible on your credit report for at least 10 years. It is possible to attach an explanation of the circumstances in which you filed to the report, so that anyone viewing this can understand why you filed.
It is Not Easy to Find
It is not possible to simply Google search whether someone has filed for bankruptcy and find a list of names. If someone has become curious about whether you have filed for bankruptcy it is possible to find out, but that person must exert considerable effort in order to do so. For any acquaintance to find your bankruptcy they would need to first register with the ‘Pacer’ system (used by federal courts to store court documents). They will then be given a password and access to the system where they will then need to learn how it works and become familiar with the search features. Only then are they able to locate your case and confirm you have filed for bankruptcy.
To sum up, it is possible that someone you do not wish to find out may become aware that you have filed for bankruptcy. This does not however, mean that they are likely to find out, if you make efforts to keep this as confidential as possible.