Who can find out that I have become insolvent

It is not without reason that most people consider bankruptcy as a last resort. Bankruptcy is not only a blow to your financial status and credit score but also a social stigma. It poses a serious question to you trustworthiness and sense of responsibility. Under the circumstance, it is no wonder that a large number of people are worried about the fact that who can find out you have filed bankruptcy. There is nothing to be ashamed about because bankruptcy has serious implications on your socio-economic life. Therefore, your concerns are quite reasonable.

If you file bankruptcy then it becomes a public record and everyone will have access to the information. Nonetheless, there are some formalities involved in the process. In order to find out whether you have filed bankruptcy or not, an individual needs to make an account on Public Access to Court Electronic Records. He may be charged some fees to have access to the required information. Naturally, only people who have interest in you and want to dig out more information about you will go through the hassle.

A lot of people fear that their relatives and friends will find out about their bankruptcy filing. But you should understand that the court will only inform the people to whom you owe money. They are notified as your creditor as per the federal bankruptcy law. So unless you have borrowed money from your close ones, they won’t have a clue about your filing. Also, if you are making payments towards child support or alimony then the recipient must be informed about your bankruptcy filing. This is because if you fail to make regular payments towards either child support or alimony then it can have some impact on the bankruptcy case.

People who file bankruptcy just shudder at the thought that their employers might be notified. Well, if you file a Chapter 13 bankruptcy then your employer will be certainly informed because a certain part of your salary will be deducted to pay your creditors. If you file Chapter 7 bankruptcy then your employer won’t be informed and he can know about your bankruptcy filing only if he makes an effort to find it out.

Though bankruptcy is a public affair, chances are that most people won’t know about your filing unless you choose to tell them.