Bankruptcy Myths #3: My Reputation Will Be Tarnished

Most people know that bankruptcy does become part of public record, which is why many fear that their friends and family will find out about the bankruptcy. The truth is, no one is likely to find out about your bankruptcy unless you tell them.

How Can I Be Sure?

It is true that bankruptcy filings are a matter of public record, but that pertains to the legal and court system records. If someone was to investigate court records, your bankruptcy filing may appear in the search. However, this rarely happens and there is hardly a need for anyone to go looking for this information.

The exception to this case is in the instance of employment opportunities. Some employers check credit histories as part of the hiring process, which would reveal a bankruptcy filing within the last 10 years. But before you begin to worry you should know that there are explicit laws that prevent employers from discriminating against an employee based on a bankruptcy status. Therefore, if you were denied employment or terminated based on your bankruptcy filing status, you would have legal recourse against the employer.

The most important thing to remember is that your business is as private as you want it to be. You do not owe anyone an explanation about your financial history or future. If you feel your employer acted in a negative way due to your bankruptcy status, seek counsel from an attorney.