How to Find Out If a Business Has Filed Bankruptcy

Businesses file for bankruptcy in order to manage large sums of debt.

Running a business, no matter what size or scope, involves obtaining some level of debt for operations. When a business experiences a particularly slow fiscal year, manages its operations poorly or must wade through a recession, debt can overwhelm the company. If you plan to invest or work in a particular company, it may be helpful to find out if the business has filed for bankruptcy. Understanding an entity's financial past may give clues to the sustainability of the company in the future.

Things You'll Need

• Credit card

Instructions

1. Navigate to the U.S. Bankruptcy Court Federal Record Retrieval Service website and request information on your business of interest. Bankruptcy information requests can be performed via email, or, if you are willing to wait, by standard mail. The U.S. Retrieval Service will supply information on a company's bankruptcy, if they have filed one. As of 2010, the cost for the service is approximately $20 to $50, depending on the number of records.

2. Buy a report for your business of interest from a credit reporting agency like Experian. You can file for the credit report of a business instantaneously as long as you have the name of the business. The report will contain debts to creditors, as well as any past bankruptcies. You can purchase a report, as of 2010, for approximately $25.

3. Call the courthouse of your city if your business of interest is locally located. If you do not need physical copies of the bankruptcy proceedings, the court may be able to tell you if the business has filed for bankruptcy at no cost. Any copies that you need will cost a court-specified copy fee per page.

4. Create an account on the Public Access to Court Electronic Records website. The PACER system contains any court records that involve your business of interest. As of 2010, the cost for viewing or printing records is $0.08 per page. The website will provide step-by-step instructions for searching its database.

References

• Public Access to Court Electronic Records
• Experian: Business Credit Reports
• United States Bankruptcy Court