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Nearly 1.5 million Americans file for bankruptcy every year. Even the world’s wealthiest and most powerful are not immune to financial trouble. Walt Disney, Toni Braxton, Mike Tyson, Larry King, money gurus like Dave Ramsey… the list goes on.
Still, we understand that the decision to file for bankruptcy is not an easy one. You may be worried about how it will affect your life and your future. One of the biggest concerns people have is who will find out that they filed for bankruptcy.
The answer? Not as many people as you might think. Here’s a look at who will know you filed for bankruptcy in Raleigh, NC.
The Bankruptcy Court and the Trustee Will Know
When you file for bankruptcy, the court and your trustee are the only people who are automatically notified. The court will send you a notice of your 341 meeting, and the trustee will send you a notice of your first payment due date.
Your Creditors Will Be Notified
Your attorney is also required to notify all of your creditors listed in your petition.
They will also receive a notice of the date of your 341 meeting of creditors. This is the meeting where you will meet with your trustee and answer questions under oath about your bankruptcy case.
Your employer is not one of your creditors, so they will not be notified by the court about your bankruptcy filing.
Your Family and Friends Don’t Have to Know
Your family and friends are not likely to find out about your bankruptcy unless you tell them. Bankruptcy is a public record, but it is not publicized in the same way as a criminal record.
Also, if some of your debts are joint debts with a family member or friend, they may be notified by your creditors about the bankruptcy.
Your Employer May Know, But Not Always
Your employer is not likely to find out about your bankruptcy unless you voluntarily choose to have your Chapter 13 payments deducted from your check. Wage garnishments also stop when you file for bankruptcy, but the reason is not disclosed to your employer.
If you are concerned about your employer finding out, you can talk to Attorney Weik.
Your Landlord or Mortgage Company May Not Know
Landlords are not notified about bankruptcy filings as long as you’re current on your rent payments. The reason is that back rent is not included in debts that can be discharged under Chapter 13 or Chapter 7 bankruptcy.
The Bottom Line
More people are seeing bankruptcy as it really is – a powerful tool for getting a fresh start.
However, it’s still a personal decision and for many Raleigh residents, one they’d rather keep private.
Attorney Weik will be able to put your worries to rest and shed light on who will – and who won’t – find out about your bankruptcy. Contact us today for a free consultation.
Call Weik Law Office today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.