Many people who are planning to file a Chapter 7 or Chapter 13 case are curious about who will find out about their filing. Most people know that bankruptcy filings are public record, so it is possible for somebody who is searching hard enough to discover your filing. However, the truth is that most of your friends and family will never know about your filing unless you owe them money or you tell them about it.
Who actually receives notice of your filing? The quick answer is your creditors. All debtors must disclose their assets and their debts, including money owed to family and friends. It is important that you do not pay debts owed to family or friends to keep them from finding out about your bankruptcy case. This could be considered a preferential payment and the trustee will pursue repayment of the amount.
What about your employer? Whether or not your employer finds out about your bankruptcy filing depends on your individual circumstances. If you file a Chapter 13 case and your plan payments to the trustee are made by payroll deductions, your employer will be put on notice. Additionally, if your employer requests a copy of your credit report, your bankruptcy filing will be noted on the report.
The past several years have resulted in more and more people filing for bankruptcy, so there is not the stigma that there used to be. In fact, you might discover people are more understanding than you might expect. Regardless, most people will never know about your bankruptcy filing unless you tell them about it.
The “defender of the little guy,” DeLadurantey Law Office. LLC handles bankruptcy matters (Chapter 7 and Chapter 13) in Milwaukee, South Milwaukee, West Milwaukee, and Milwaukee County, including the municipalities of Bayside, Brown Deer, Cudahy, Fox Point, Franklin, Glendale, Greendale, Greenfield, Hales Corners, Oak Creek, River Hills, Shorewood, St. Francis, Wauwatosa, West Allis, and Whitefish Bay. The firm also can handle your debt negotiations, debt relief, and mortgage loan modifications. Contact DeLadurantey Law Office, LLC by phone: (414) 377-0518. Like us on Facebook.