Interviewer: How public will my bankruptcy be? Will my friends or my job find out?
Marilyn Minger: Bankruptcy filings are public filings, except for the debtor’s social security number, so the records are available to anyone. Notice of the filing is sent to all of the people to whom the debtor owes money, so if that includes the employer or friends they will be notified. Otherwise, they may not. Obviously if the bankruptcy is being used to stop a wage garnishment, the employer necessarily will find out. Also, there are people that scan the daily bankruptcy filings and inform whoever subscribes to their services about the day’s bankruptcy filings. In this way the credit bureaus and credit card companies find out who has filed bankruptcy.
The Adverse Impact of a Bankruptcy on a Credit Score is Not Permanent
Interviewer: Will bankruptcy forever condemn me to bad credit?
Marilyn Minger: I don’t think so. One of the dangers after you file a chapter 7 is once you get the discharge, you’re ripe for getting credit offers because you don’t owe anybody any money and you can’t file again for almost 8 years. So, you have to be really careful. I think there are ways to rebuild your credit. There are prepaid cards available and other ways you can rebuild your credit, and it probably it takes a couple of years. So, when you file, you need to know that all your credit accounts will be closed whether or not you owe money on those accounts at the time of filing. If you don’t owe, you don’t have to report them but as I said, they will be reported and they will be closed.
We are a debt relief agency helping people file for bankruptcy relief under the Bankruptcy Code.