So when a person files for bankruptcy protection under the law, they will at times have the erroneous belief that somehow all of their friends, colleagues, and employer and supervisors will discover that they have sought bankruptcy protection. They’ll all know that you’ve gone bankruptcy, right? Not really. When a person files for protection under bankruptcy laws, there are specific people who will find out. But for the most part, this is a select group of people. Clearly your creditors will find out as they receive a letter and sometimes a phone call informing them of the same. Of course your attorney will know. And there are potential others, such as future prospective employers if they run a credit check. View the dallas bankruptcy YouTube video here.
Bankruptcy filings are public record, but must be paid for by logging in and searching for a debtor by name and paying a fee to do so. Because of this, it is extremely rare unless you are a public figure of some sort that anyone will seek out information regarding you having filed a chapter 7, 13, or chapter 11 bankruptcy. For this reason, the fears of many prospective bankruptcy filers should be put to rest.
There are other situations where you may have to disclose the bankruptcy, such as in a job like as an executive at a corporation. Other cases might include where the job necessarily requires a certain financial acumen, such as that of financial consultant, accountant, or more. These are rare situations. If you are in a current job, the bankruptcy code itself provides specific defense and relief against being fired or otherwise discriminated against on the basis of your having filed for bankruptcy according to federal law.
Do not be alarmed by those who say bankruptcy will ruin credit for 7-10 years. The case is rather different. If filing, a bankruptcy generally affects credit for a period of a year to two years following the filing of bankruptcy. After that it fades into the distance with regards to material affect on your report and score for prospective lenders.