Who Will Find Out If I File For Bankruptcy?

More than a million people file for bankruptcy each year. While some people still feel there is a stigma associated with bankruptcy, more and more savvy people are using this tool to their advantage. As a tech entrepreneur from the Silicon Valley once said, “If an entrepreneur has not filed for bankruptcy at least three times, he hasn’t even gotten started in the Silicon Valley yet.”.
 
However, people still want to know “who will find out when I file for bankruptcy?”.
 
If you file bankruptcy, your creditors and the bankruptcy court will know, but your family, friends, and employer often do not have to find out.
 
Creditors: Since your bankruptcy is intended to eliminate your debts, it is clear that your creditors will be informed of your filing for bankruptcy.
 
Bankruptcy Trustee: When you file bankruptcy, you will be assigned a trustee, who will help guide you through your case. This trustee is usually expected to keep the details of your case confidential to outside parties.
 
Family or Friends: If you have a co-signed loan with a friend of family member, and then file bankruptcy to discharge your debt, that person will usually be notified. Otherwise, the bankruptcy court does not notify family or friends about your bankruptcy unless there is an obvious reason to do so.
 
Potential Employers: If you are applying for a job, a potential employer may be able to find out about your bankruptcy, but they are prohibited by law from discriminating against you due to your having a bankruptcy on record.