The Bankruptcy Record is open to the Public
Before you file for bankruptcy, it is important to realize that
all bankruptcy proceedings will be listed in public bankruptcy
records. Therefore, if you have filed for bankruptcy, it is
possible for anybody - including future employers or creditors -
to easily look up your bankruptcy record while trying to
discover your financial history. This can be very annoying in
the future, and might make it harder for you to get credit that
you need.
Another result of this is that there is really no point in
neglecting to mention that you have had to file for bankruptcy
in the past. Since the information is public, you cannot easily
hide that information from a future creditor. However, you can
also find out whether or not your own information is still
listed on the bankruptcy record, and you can also find out
exactly what information other people have access to by
searching for yourself.
There is a benefit to having bankruptcy records, however, and
that comes if you are going to invest in a company, or if you're
looking to buy from one. You can find out what a company's
bankruptcy history is, which will give you a good idea as to
whether or not they are worth investing in. This is especially
useful since the bankruptcy proceedings regarding smaller
companies rarely make the news - and you probably will not have
heard that a particular company has ever gone bankrupt.
Another thing that you can look for if you need more information
would be the bankruptcy records that were filed by the
bankruptcy court. These records will have detailed information
about the bankruptcy proceedings, so you can find out what to
expect if you end up doing business with that particular company.
However, it's important to note that just because your name is
listed in the bankruptcy records does not mean that it will be
impossible for you to get a loan or other line of credit if you
need it. In fact, in most cases you will still be able to get
credit after a bankruptcy, especially if you allow time to pass
and work on rebuilding your credit rating.