Can Bankruptcy Filings Remain PrivateWednesday, December 15th, 2021, 9:01 am
When you decide that bankruptcy is the only option to get out of debt, it can provide you with a great sense of financial freedom. When you feel overwhelmed by the sheer amount of debt, bankruptcy may be the answer you are looking for.
Today, bankruptcy is not seen as a bad thing as it was in the past. However, many would still prefer that their bankruptcy filing was kept secret and private. With that in mind, it is normal to think if bankruptcy can remain private or ¨sealed¨ by a court. Regrettably, a bankruptcy cannot be made into a private matter. Of course, circumstances may arise if your debt involves secrets that are better-kept secret or if a current protection order is in effect. For this case, the individual´s address may be able to be sealed, but not all information.
A lot of times when a person files for bankruptcy, they don´t want to feel like they are embarrassing their family or close friends. Although this is reasonable, making the entire bankruptcy case private is not going to happen due to the fact that the creditors you owe money to are required to be notified as part of the legal process, which also allows them to have a say in the case. Not only that, but financial institutions need to be able to make decisions that are fair and the only way that can happen is by knowing if bankruptcy has taken place.
Also, all debtors are legally obligated to have any bankruptcy viewable within the credit report and which will last up to 10 years. Because of this legal obligation, anyone who views your credit file will see bankruptcy. The good thing though is that the bankruptcy can only be accessed for official purposes and those who you have given the authorization to see it. In fact, it is a legal method that all consumers have the right to do if they truly cannot pay their debt. This is an opportunity afforded to all who wish to start over with their finances. By remaining financially responsible, then you have nothing to fear. Remaining stable with your finances makes you much more powerful than hearing what others may say about you and your bankruptcy.
Keep in mind that when a bankruptcy filing is made, a filer´s family or friends never even know that bankruptcy has occurred. The only way that they would find out would be if you decide to share the fact that one has been conducted. No system exists that keeps track of bankruptcies and who has or has not filed one. With access from only the court that granted it and the attorneys involved, it is clearly an impossibility to have someone find out on their own.
When it all boils down to it, filing for bankruptcy should be the last resort to having your debt resolved. However, when there are no other options, then bankruptcy can be justified. As a legal process, the possibility for the bankruptcy to remain private is a no-go and with little information being an exception such as an address. With that, if you have any unanswered questions regarding bankruptcy, then you need to get a hold of us today.