All bankruptcies are a matter of public record, but they’re not really all that public. Your creditors will receive notice that you filed bankruptcy, but everyone else would have to search your full name and other personal information in the right place. It’s not like they’re published in a newspaper or something like that; bankruptcy filings are posted in the court’s electronic database, but nowhere else.
Such records are complete, but it’s not like they’re easy for an average person to find, so even if you’re one of those who is are worried about the stigma attached to a bankruptcy filing, it’s not likely you should be worried about.
If you’re worried about your employer finding out, you should be more worried if you don’t file bankruptcy and something like a wage garnishment happens to you. Obviously, your employer will find out about that, especially when the payroll department sends some of your wages to a creditor. If you file a bankruptcy and that never happens, there is really no reason your employer should find out. They won’t get a notice, unless you are in some sort of a special industry where that sort of thing is monitored.
Is it Possible to File for Chapter 13 with Some Creditors and Not Others?
In a word, no! You have to include all creditors on your bankruptcy petition, regardless of what type of bankruptcy you file. The bankruptcy court will say, “It’s not very fair for you to declare bankruptcy and continue paying some creditors, but not others.” That said, there are certain situations in which you can pay back certain debts, as opposed to others down the road.
You have to include everybody on your bankruptcy petition. In a Chapter 7, you can enter into reaffirmation agreements you can do to, sort of, to exempt certain debts from the bankruptcy estate, and they are treated as though you didn’t file bankruptcy. With a Chapter 13 bankruptcy, many such things aren’t necessary.
In short, you have to include all of your creditors, but if there is a reason that you want to pay someone back for some reason, then you can always do that.
If I Have Inherited a Home that is Going to Foreclosure Can a Chapter 13 Save that for Me?
That’s possible. It will be complicated, but once the house becomes yours after the estate is administered and then you are on the title, you may be able to check that with a Chapter 13 bankruptcy. The timing will be important and may be a problem depending on how close it is to foreclosure, but as soon as it becomes your debt, then it becomes something that you may be able to do.
How Do I Get Started?
The first step is to, call an attorney, but make sure you have everything you need, including tax returns, recent pay stubs, and documentation of who your creditors are and how much you owe, especially on your car and your house.
I have a worksheet that I give my clients, which they then fill out and bring back to me with those documents. We then help fill out the petition. As soon as that petition is filed, the process is underway.
For more information on How Public is a Chapter 13 Bankruptcy, please call (801) 441-2013 today to schedule a free initial consultation. Get the information and legal answers you need today.