Will people know if you filed for bankruptcy?

Filing for bankruptcy does not carry the same connotation it did decades ago. Now it is so common that most people know at least a few friends who have gone through the process. According to the United States Bankruptcy Court in the State of Minnesota, 5,868 people have already filed for bankruptcy in 2019 alone, so chances are good that well over 10,000 people will file before the end of the year. 

Plenty of people require bankruptcy to take care of medical or credit card debt. Although it is common in today's world, many people still feel a level of shame in having to go through it. You may fear that your friends, coworkers and family members will find out. While it is possible that they may eventually learn about it, you do not have to worry. 

Who finds out?

The only people who will directly hear about your bankruptcy are those directly affected by it. That means your creditors will all know. They have to attend your 341 creditors meeting to discuss your debt, so naturally, they have to know about it. Additionally, your boss or HR department may also learn about it if the requirements of your bankruptcy entail garnishing your wages. 

Could other people find out?

All Minnesota bankruptcies are a matter of public record. That means anyone could go online to find out who filed for bankruptcy in a given month. However, most people will not search for this information. They generally only find out if you tell them. Bankruptcies often only appear in the news when they involve a public figure, such as a politician or police officer. 

Additionally, you can add a personal statement to your credit report so that anyone reviewing your score understands the circumstances surrounding your decision. For example, you can say you filed due to excessive medical debt due to an unforeseen illness. People will understand, so you should not let shame influence your decision on whether you file.

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