Are Bankruptcy Documents Public?
Bankruptcy documents are available to the public. The Administrative Office of the United States Courts maintains a national database called PACER -- Public Access To Court Electronic Records. This database offers complete records of information filed in federal bankruptcy courts. Any member of the public can access the database and look up bankruptcy records. Information on bankruptcy filings is also available through federal bankruptcy courts and is considered public record.
Other People Are Reading
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Setting Priorities
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Worrying about embarrassment from public records disclosure should not be your primary concern if you are considering bankruptcy. It's more important to focus on credible debt management advice from a government-certified credit counselor and a reputable bankruptcy attorney. Getting your finances in order and recovering from past credit mistakes is more important than protecting your financial privacy.
Wide Exposure Unlikely
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It is true that your next-door neighbor could log onto the government database and read details of your bankruptcy. However, that typically doesn't happen. For one thing, there is a fee for accessing the database, and generally your neighbor won't know you have filed for bankruptcy unless you talk about it.
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Media Attention
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The news media is unlikely to search for your bankruptcy documents unless you are a star athlete, celebrity, politician or notable business executive. People file for bankruptcy every day, but most of them are just common people dealing with everyday life. Their bankruptcy stories simply don't interest the media.
Credit Reports
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As part of the public record, your bankruptcy information will automatically appear on your credit report. The information will remain on your report for at least 10 years, including the date of the filing and the date of the discharge. A Chapter 13 bankruptcy, which is one of the most popular forms of bankruptcy, requires a payment plan of three to five years. Under that scenario there could be bankruptcy information on your credit report for 15 years -- from the date of filing through the payment plan and 10 additional years after the official discharge.
Maintaining Privacy
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The best way to maintain privacy about your bankruptcy is to not discuss it with anyone. Your credit information is available only to current creditors and creditors you authorize to review your file. Bankruptcy information could be obtained by prospective employers conducting background checks, but laws prohibit them from sharing your confidential information. If you are recovering from bankruptcy, consult with a credit counselor or bankruptcy attorney to discuss how to explain your bankruptcy on employment or credit applications.
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