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.