Even successful people have filed bankruptcy, including Abraham Lincoln and Nicolas Cage. Despite the necessity for debt relief, it is common that people are embarrassed about their financial situation. The word “bankruptcy” conjures a negative connotation with others. Sometimes the only way out of a hopeless or impossible debt situation is filing for bankruptcy, and that is a personal choice made after much consideration and counsel.
In Arizona, bankruptcy is public record. A Chapter 7 bankruptcy will remain on a credit report for 10 years, and a Chapter 13 bankruptcy for 7 years. In order to determine which chapter bankruptcy best addresses your debt needs, contact an experienced Arizona bankruptcy attorney. Consultations are typically free, and pricing is competitive.
Clients we serve are concerned who may be notified of a bankruptcy, and under what circumstances they would be notified about the filing.
The concern here is that if you rent your home, your landlord may not want to find out you filed for bankruptcy. Any current leases must be listed in your bankruptcy petition.However, when filing for bankruptcy, you may opt to exclude your landlord from the mailing list. If this is a concern, talk to your bankruptcy attorney about your specific case.
Future or prospective landlords will be able to see your bankruptcy, but it should not affect a rental agreement since income is no longer taken by interest on unsecured debts. Our legal staff can send a letter to a prospective landlord assuring him or her that rent is not a dischargeable debt for your bankruptcy, and therefore, should not reflect on your rental application.
Odds are, your spouse will find out about your bankruptcy if you are separated but not legally divorced from your spouse. If a divorce hasn’t occurred, a spouse’s income will be counted with yours towards the income limits for bankruptcy. Plus, if you are still married, you will need to provide a spouse’s tax return, pay stubs, and bank account information.
If you are dealing with overwhelming debt, and taking action to make the best decisions regarding your financial situation, stop worrying if your neighbor may read your bankruptcy filing in the paper and start helping yourself rebuild your financial future. It is true, clients who file bankruptcy are concerned who will know about it. Often bankruptcies are printed in the paper, as it is a matter of public record.
Your Employer / Your Co-Workers
Your employer won’t be notified of a bankruptcy unless you are facing a wage garnishment. Your employer already knows that you are dealing with financial debt if your wages are being garnished. The Human Resource department where you work will be notified once your bankruptcy is filed in order to stop the garnishment.
Life circumstances, sometimes beyond our control, happen. For the most part, others are understanding, and frankly, it is not anyone else’s business about your debt situation or bankruptcy case. Our bankruptcy attorneys and legal staff draft petitions to ensure that only the people who need to know are notified of your bankruptcy. If it is a great concern to you that others find out of the bankruptcy filing, we will do our best to look out for your interests.
Contact our office to schedule a free, confidential consultation with an attorney to begin your road to a fresh financial beginning.