Protect Your Privacy during a Bankruptcy

Protect Your Privacy during a Bankruptcy

One of the biggest concerns people have about bankruptcy is the public’s response to their bankruptcy. Once people know that you have filed for bankruptcy they tend to judge even if they are not familiar with the reasons you had for bankruptcy; there’s still a kind of a stigma of failure associated with bankruptcy.

So, before you decide to take this course of action, you may want to get familiarized with some basic tenets of bankruptcy. The best way to do that is to consult an expert bankruptcy attorney firm, like They should be able to answer all of your questions related to your specific case, but if you want the broad strokes, continue reading this article.

Bankruptcy Filing Is a Matter of Public Record, but with a Caveat

When you file for bankruptcy, it has to go through a court, which automatically means that it is inducted into the public record. No matter if you have filed for the first time or the twentieth, whether you like in New York or California, this is always the case.

That being said, very few people will actually know that you have filed for bankruptcy and how to access these files. Bankruptcy doesn’t come up in a regular internet search, but you need to use a specialized program called PACER. This registry contains all the bankruptcy information from people all across the USA. PACER is a paid service, and it requires an authentication, so the person who has asked for your bankruptcy information will always be identified.

Does Your Employer Need to Know about Bankruptcy?

In theory, you don’t have to tell anyone that you are filing for bankruptcy. However, in practice, it is a lot harder to achieve that. Not only can they use the PACER registry to find out, but they may also run a credit check on you and discover that your score is bad. They would still need your approval to do this, but refusing a credit score check is fairly suspicious and can result in some kind of penalty.

Keep in mind that some professions, like the law enforcement or financial institutions, will be unavailable to you, at least until your credit score has returned to normal and you are not a risk for blackmail or other financial manipulation.

How Long Does Bankruptcy Linger in Your Credit Report?

Bankruptcy is supposed to give you relief from debts and let you start over. However, if will have an impact on your credit score and you will have to repair that score over time. There are different kinds of bankruptcy and they stay with you for different amounts of time.

In chapter 7 bankruptcy, it stays with you for a full decade, whereas chapter 13 is a bit more lenient and it will be wiped from your record in 7 years. Even though 10 or 7 years sounds like a long time, you should keep in mind that the impact that a bankruptcy has on your day to day life will be reduced over time as you improve your credit score. However, you do need to put in the effort to rebuild your life and your credit score.

Am I Protected by Client-Attorney Confidentiality with a Bankruptcy Attorney?
Even if you only take an initial consultation and don’t pursue the case any further, everything you talk about with your attorney is protected and will not be disclosed to a third party.

If you decide to pursue this course of action, you will need to be sure that you have the best bankruptcy attorney you can find.

To consult The Bankruptcy Lawyers Chang & Diamond, APC
9089 Clairemont Mesa Blvd, Suite 110, San Diego CA 92123

Categories: Legal Advice

About Author