Bankruptcy is a legitimate tool for consumers to protect themselves and restore financial stability. At the same time, people who file for bankruptcy often hesitate to talk about it out of shame or embarrassment. As a result, one of the first questions filers ask is if their bankruptcy filing is open to the public or will be discovered by employers, business partners, or relatives.

It’s vital for you to know that bankruptcy is a matter of public record, so anyone can technically access your bankruptcy files. However, even so, it’s unlikely that anyone will find your bankruptcy files who didn’t already know to look for them; if you don’t tell anyone, it’ll be difficult for them to find the files by accident. Your bankruptcy attorney will also be barred from sharing the details of your case with anyone.

Will My Bankruptcy Show Up on a Credit Check?

If an employer or potential employer researches your credit history, your bankruptcy will come up. The same is true if you apply for a loan. Not every employer will do a credit check, but there are certain jobs that will check an employee’s financial health for security reasons. Bankruptcies won’t appear forever. It usually takes ten years, but eventually your bankruptcy will disappear from credit checks. Regardless, the findings of a credit check during a job interview are usually confidential.

Bankruptcy records may be public, but the number of filings each year is so massive that it would be very hard for a person to specifically track your information without serious effort. Unless you’re a celebrity or public figure, the odds that someone will access your bankruptcy are extremely low.

The Only Way Friends or Family Might Learn About Bankruptcy

During a bankruptcy, your creditors and lenders will be officially notified by the court about your filing. This is part of the automatic stay that protects you from creditor harassment, but it also allows creditors a chance to come forward and claim part of the proceeds.

If you took a loan from a family member or friend or co-signed a loan with anyone, then they’ll be notified as part of this process. They’ll receive notice in the mail about your bankruptcy filing. As a result, you may want to tell this person to keep the filing a secret, which they’ll likely respect. People usually understand when loved ones want to keep their financial situations a secret.

The Most Likely Reason a Bankruptcy Would Become Common Knowledge

The only reason that word will get out about your bankruptcy would be if you announced it or said it to someone who spread it around. Like divorce, bankruptcy is a popular gossip topic. Local newspapers don't typically post local bankruptcy filings, so chances are that unless you have become famous or are bankrupting a very notable business, your bankruptcy will not be revealed.

If you need help navigating your bankruptcy as confidentially as possible, speak with an experienced bankruptcy attorney today.