Many people we talk to are worried that someone will find out that they filed a bankruptcy.
The fact is that unless you’re rich and famous, the only people that will likely know that you filed for bankruptcy likely be your creditors and people that you might choose to tell yourself.
Although the bankruptcy itself is a matter of public record, it’s not an easy to access public record.
You can’t simply go online and Google up somebody’s bankruptcy information.
Most people would actually have to visit the bankruptcy court and look on the court clerk’s computer to find out who filed for bankruptcy.
No newspapers locally that I am aware of publish information about normal consumers who file for bankruptcy.
Bankruptcy is nothing to be ashamed of
The fact of the matter is that you probably know lots of people who have filed for bankruptcy.
Most of the people that I’ve talked to tell me that they think no less of people who file bankruptcy simply for that reason.
And in fact they would even encourage others to file bankruptcy if that was what’s right for them.
In chapter 7 cases, your employer is not notified when you file bankruptcy, unless your employer happens to also be a creditor of yours, which is normally not the case.
And in Chapter 13 cases, although usually plan payments are usually made by payroll deduction, this is not always the case
sometimes there’s a good reason not to have a Chapter 13 plan payment taken directly out of the paycheck.
Sometimes the trustee will permit plan payments to be made by a bank account withdrawal, and sometimes payments are sent directly to the trustee.
The fact that you will have filed a bankruptcy is not something that’s likely to be widely known in the community.
Most of us are just plain not newsworthy, thank goodness.
We’ve had people who live next door to each other and filed bankruptcy at about the same time and never do the other one filed.
So if you choose to keep this information to yourself it’s very unlikely that anyone will ever find out.
But if they do, filing bankruptcy is certainly nothing to be ashamed of
In fact, if you’re doing the right thing for yourself and your family you should actually proud of yourself,
Your are doing something that is difficult but necessary for your financial well-being.