Who is Going to Know About My Bankruptcy?

Despite all the successful people who have filed bankruptcy, including Abraham Lincoln and Nicolas Cage, some people considering filing for bankruptcy are embarrassed about their financial situation.  There is still a negative connotation when you hear someone filing for bankruptcy.  It really shouldn’t be that way as sometimes filing for bankruptcy is one of the only ways out of an impossible financial situation.
Who will know about my bankruptcy?In Arizona, as well as most every state, bankruptcies are a matter of public record.  Also, a Chapter 7 bankruptcy will stay on your credit report for 10 years, and a Chapter 13 bankruptcy for 7 years.  To find out which chapter of bankruptcy may best suit your needs, contact an experienced Arizona bankruptcy lawyer today.  Consultations should be free, and pricing is always competitive.
Below are some common people that clients are concerned about being notified of the bankruptcy, and in what circumstances they would be notified of your bankruptcy:
Your Landlord- If you rent your home, you may be concerned that your landlord won’t be happy about you filing for bankruptcy. However, you will have to list any current leases in your bankruptcy petition, but you can opt to exclude your landlord from the mailing list.  Talk to you AZ bankruptcy attorney about this.
Prospective landlords will be able to see your bankruptcy, but it shouldn’t preclude you from renting since your income is no longer eaten up by interest on unsecured debts. Additionally, we can send a letter to prospective landlords assuring the rent isn’t a dischargeable debt in your bankruptcy for former clients.
Your Spouse- If you are separated but not legally divorced from your spouse, odds are that they will find out about your bankruptcy. Because the dissolution of marriage has not yet occurred, their income will be counted with yours towards the income limits for bankruptcy. For that reason, you will need to provide their tax return, paystubs, and bank account information. Unless you already have those documents up to date on hand, you will likely need to request them from your spouse and explain what is going on.
The Nosey Neighbor-  though this is a rare thing nowadays, your neighbor who has nothing better to do than scour the newspaper may run across your bankruptcy filing as often it is printed in the paper.  However,  fewer and fewer people are reading the newspaper these days.  Thus, chances of them spotting your bankruptcy filing are small.  Though, you should be aware that it is a matter of public record.

Your Employer- If your wages are being garnished, your employer already knows that you are in a period of financial stress. Once your bankruptcy is filed, the HR department at your job will need to be notified of your filing and provided with your case number to stop the garnishment. If you aren’t facing a wage garnishment, your employer won’t be notified of the bankruptcy.

Life Happens
Life happens, and for the most part, people are understanding about how life circumstances for others to file for bankruptcy. Our bankruptcy lawyers and staff draft our petitions to make sure that only the people who need to know are notified of your bankruptcy.  We are always doing our best to look out for your interest.  Call our office today to schedule a free, and confidential, consultation.  It’s time to get yourself on to the road to a “Fresh Start”.
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