Who will know about my Bankruptcy Case?
Although many people file bankruptcy each year, most do not want others to know about it. If worrying about other people finding about your filing is preventing you from obtaining the debt relief you need, it shouldn’t. Although all bankruptcy cases are public record, the reality is that most people will never know about your Chapter 7 or Chapter 13 filing.
Only your creditors (anyone that you owe money to) will receive notice of your bankruptcy case. When you file a bankruptcy, the court requires you to disclose all of your assets and debts, including loans you have received from friends or family members. It is important to note that you should never pay a debt just prior to filing your case to avoid the individual from receiving notice of your case. The court may consider this a preferential payment, which means the trustee may pursue repayment of the amount to be used in your bankruptcy estate.
Many of our clients ask whether their employer will find out about their bankruptcy filing. The answer depends on the type of case you file and your own unique situation. If you file a Chapter 13 and you need to stop your wages from being garnished, then you will need to provide notice of the bankruptcy filing to your employer to end the garnishment. Another circumstance where an employer may find out about your bankruptcy filing is if your credit report is requested. Your bankruptcy will be noted on your credit report for seven to ten years.
It is important to understand that thousands of people file for bankruptcy protection each year, so you are not alone. You probably have many friends or acquaintances that have filed a bankruptcy case and you just never knew it. Don’t let the fear of others finding out about your filing prevent you from eliminating your overwhelming debt. Contact a seasoned bankruptcy lawyer at Nielsen Law Group today. You can schedule your initial consultation by calling (480) 888-7111 or submitting a web request here.