Chapter 7 Success Lawyers Chicago - Is Bankruptcy Public Information?

Is Bankruptcy Public Information?

There’s another misconception that comes to my mind too.
There’s all this talk these days about privacy and everything else. People want to know whether or not someone else is going to know that I filed a bankruptcy.
That’s a common misconception.
Could you shed a little light on that?
Nobody wants it advertised, that’s for sure. You don’t want it hanging from a banner in a small airplane across the football stadium that so and so filed for bankruptcy. But, in reality, unless you’re a celebrity like Burt Reynolds or one of other actors that filed for bankruptcy, nobody is going to know about it. It does get published. Typically in the Chicago Daily Law Bulletin if you file in the Chicagoland area. It’s a very small snippet. Someone would have to know where to look to find it or they can go on the computer at the Federal Building and type in your name and it would show if you filed bankruptcy before. I mean the odds of someone doing that are slim and none.
So, really your neighbor won’t know, your job won’t know, your friends won’t know, unless you want them to know.
I will say this though. The creditors, whoever you owe money to, are going to get a notice. So, if you owe a friend or a family member, you are required by law to list those individuals and they will receive a notice, they will find out. But, hopefully they know you, they’re aware of your situation and their accommodating to it.
A lot people also get a little upset when they think that perhaps their employer, their boss, is going to know that they filed a bankruptcy.
Now, from what you said, generally that is not true. But, are there circumstances where your employer would find out that you’re filling bankruptcy, specifically, garnishments; and here’s why. When you file a bankruptcy the garnishment can be stopped as long as the employer receives a notice of the filing. The notice basically tells them, this person has filed for bankruptcy relief, do not deduct anymore out of his wages. So, in that case the debtor wants the employer to know because that’s the way they are going to get more money back in their paycheck.

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