Can You Keep a Bankruptcy Private?

Bankruptcy is a matter of public interest. For as long as you live, your bankruptcy will be on view for anyone to see. Fortunately this is a matter of relevancy as it's possible to keep it a quiet issue even though it can't be private.

Why Bankruptcy is a Public Matter

All legal proceedings are part of the public record. Bankruptcy is no exception. When you filed, you affected others and they have a right to know about it. All they have to do is to go to the courthouse or use PACER and perform a search on your name as opposed to having to jump through hoops to find information they're entitled to.

Of Morals and Secrecy

You may be feeling embarrassed about filing and worrying about others finding out. And this is where you shouldn't. Bankruptcy is a matter of business, not how you conducted yourself. Engaging in credit transactions is not a moral issue. It's really an agreement between you and a creditor on a level other than personal, even though you put out a personal guarantee to pay the loan. It is no different when one business offers another business credit. By treating it as a business transaction, you'll be less likely to want to talk or feel nervous about someone finding out.

As far as people in your various circles finding anything out, that's entirely your choice. If you keep a bankruptcy quiet, the only people who will ever know anything are you, your lawyer, the court, and the creditors. While that may seem like a lot of people, all of the entities involved have no reason to advertise the bankruptcy to those who are not involved. Keeping your filing a secret from others is your choice. Doing so will keep it as private as you possibly can.

Seek Out Legal Advice

Consult with a lawyer about your options to keep your bankruptcy low-key. They'll have dealt with these issues before and understand your concerns. Listening to what they've learned from experience can help you relax and be at ease about how public your bankruptcy really is.