In this article, we’ll discuss the important topic of: “Will my bankruptcy be in the newspaper?”
Will my name and details be printed in the newspaper if I file for bankruptcy? There is often anticipation around records to be public in default. And the reasons are apparent. At times bankruptcy reports against your name may be looked down upon by your friend and colleagues. So, being a public record, will bankruptcy details be printed in the newspaper?
The popular thought about bankruptcy is that if a person fails to return the debt they own, they file bankruptcy. In this article, we will discuss Chapter 7 bankruptcy and the properties you can seek to keep and the ones that you feel you can sell.
Will my bankruptcy be in the newspaper?
Bankruptcy details are public records (Except security details like your Social Security Number) under the Federal law. So, you need to understand that technically it is open for public viewing.
Once you have filed the case of bankruptcy, the details will be uploaded in the Pacer (Public Access to Court Electronic Records) system, often being used by federal courts.
So, anyone who can access the Pacer system can look into the system, with multiple details of your, for instance, your name, and then view the bankruptcy documents. To enter the Pacer system, you need a password which can be received online.
Despite that, people do not have the time to look through your bankruptcy details online. A person has to be very curious to look for your details, as they have to surpass the Pacer system with a password.
To the most crucial part, a few jurisdictions can upload your bankruptcy details online. And a few local newspapers can pick up that detail and print too. But do not be alarmed; these do not happen in larger jurisdictions. Let’s now find out who the 3rd parties are eventually going to find out about your bankruptcy.
Who will be informed about the bankruptcy?
When you file for bankruptcy, irrespective of whichever chapter you have filed a case in, the following organizations will receive a notification.
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Creditors
It is not mandatory that you have to inform the creditors about your financial situation. The court will notify the creditors as they are the primary stakeholders of your debts.
They are also informed about the immediate stop on collecting debts and that you cannot be contacted directly for any payment. There can be discussions with the creditors to decide on the repayment plan in lawyers’ presence in court.
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Bank or building society
The authorities can inform your bank about the bankruptcy. A piece of vital information to notice, when you file for bankruptcy, your bank account can be frozen. You will have to make prior arrangements of cash. The banks can decide if they want you to use it in the future or not.
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Landlord
If you are a tenant, there are chances that your owners are not informed about your bankruptcy. But eventually, they might find out if you are not able to give the rent. The court can only contact your owner if it feels it needs to see and discuss the tenancy agreement. You might have to prove that there are no profits/gains from the deal.
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Energy, water, and telephone suppliers
These service providers are to be informed by the court. They are bound to treat you like a new customer, and they may also ask you to submit a financial security deposit or a guarantor.
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Professional bodies
Not all professions need a clean background from bankruptcy. For instance, if you are part of a financial firm, the FBI, or CIA, it is evident that the court will inform your professional bodies.
When will your employer and landlord find out about your bankruptcy?
Irrespective of which chapter you have filed your bankruptcy case against, there are a few cases when the court can decide whether or not to inform your employer or landlord. When you are part of high security or financial related job, it may be evident that your employer knows about your financial status. This may not affect the job you are in. And if you are looking for a new job, this might be a factor of decision making for the employers.
On the other hand, if you are a tenant, there are no such rules, which your owners can ask you to evict if you have filed a case of bankruptcy. The tenant can still pay on the rent as it is a non-exempt expense and cannot be discharged. However, there is a scope of discussion between the landlord and tenant if there can be a revised rent possible. The landlords are informed soon after the case reaches the court.
Final Thoughts
So, Will My Bankruptcy Be In The Newspaper? There have been instances in the past where many newspapers have printed the names and details of the people who have filed bankruptcy. And a lot of local jurisdictions continue to do so. However, all the bankruptcy reports are open to the public on a platform. This leaves us with the idea that you have to be prepared to face the consequences of bankruptcy once filed.
Here’s a quick video to understand the topic of bankruptcy and newspaper posts.
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