There are many concerns people have when considering bankruptcy. Today’s topic addresses one of the top questions my clients have just prior to filing. Will people know I filed for bankruptcy?
Who Will Know If I Filed for Bankruptcy?
The short answer is, yes, certain people will be able to look up your bankruptcy filing as a matter of public record. However, all bankruptcies are filed into a national database online where you must have a username and password approved by the court to log on and get access to those files. So, only certain people have access to this information.
Many clients are concerned about their employer finding out, their neighbors, their family members, and/or their ex-spouses. The bottom line is this: so long as those folks are not actually creditors or co-debtors of yours who will of course receive notice, it is unlikely that they will have access to the federal database. Therefore, they would not discover that you filed for bankruptcy.
What If My Employer Finds Out I Filed for Bankruptcy?
Additionally, even if your employer were to find out, they cannot fire, demote, or transfer an employee for filing bankruptcy. This is considered discrimination. However, if you are actively seeking a job, private employers can allow a previous or pending bankruptcy to influence their hiring decision. Public employers, on the other hand, cannot.
Free Bankruptcy Evaluation
We understand that filing for bankruptcy is not a decision to be taken lightly. You likely have many more questions depending on your specific situation. We encourage you to fill out our free bankruptcy evaluation form, and one of our legal staff members will contact you to schedule a free consultation. We will then advise you of your best options depending on your case.