One of the misconceptions associated with filing for bankruptcy is the stigma associated with the process. Many people fear the bankruptcy process because of rumors associated with the process. While the process may reflect on your financial standing, it doesn’t reflect on you as a person. It certainly does not have to interfere with your business or personal life in any way. Before you miss an opportunity to take advantage of the great outcomes bankruptcy can provide, consider the following:
Protecting Your Privacy
It is true that a bankruptcy filing becomes matter of public record. However, this does not mean that your name and financial information will be plastered all over public billboards for friends, family or employers to see. Unless you are part of a scandal, bankruptcy fraud or filing a controversial business bankruptcy case, it is extremely unlikely anyone you know will ever come in contact with this information. In general, bankruptcy filing information is a matter of public record for court convenience and nothing else. Unless someone goes looking for this information, your secret is safe.
It is also important to note that your information is required to be protected during the court process and legal proceedings. This means that your bankruptcy attorney cannot share information with third parties or unaffiliated people. Further, bankruptcy laws prohibit discriminatory action based solely on the nature of your bankruptcy filing. This means that if you were to apply for a job after filing for bankruptcy and your employer conducts a credit check, they cannot discriminate against you based on the reason of your filing.