Can People Find Out I Filed for Bankruptcy?

 Posted on June 05, 2025 in Bankruptcy Procedure

Deciding to file for bankruptcy can be a smart financial decision, a chance for you to discharge much of your debt and receive a financial fresh start. At the same time, there is undeniably a stigma associated with filing for bankruptcy, even though many people who are struggling with overwhelming debt take advantage of this legal process. In fact, in 2024 over 500,000 bankruptcy cases were filed in the United States.

Nevertheless, you may be worried about how friends and employers will perceive you if you file for bankruptcy, or whether it will impact your reputation. You may naturally be wondering whether people can find out that you filed for bankruptcy.

While bankruptcy is ultimately part of the public record and it is possible for people to find your bankruptcy filing, most people will generally not automatically find out you filed for bankruptcy. Nor will they be able to access your bankruptcy records with the ease of running a simple internet search. An experienced Kerrville, TX bankruptcy attorney can advise you on the ramifications of your bankruptcy filing.

How Does the Bankruptcy Process Work in Texas?

It can be helpful to understand how bankruptcy works and how it can affect you. Bankruptcy is a process enshrined in the law that allows qualifying individuals the opportunity to erase certain types of debt. It is a safety net that voids many of your debts while giving you a break from creditor actions through the automatic stay, which stops all collection efforts on your debts for the duration of the bankruptcy.

The two main types of consumer bankruptcy chapters are Chapter 7 and Chapter 13. In Chapter 7 bankruptcy, which takes about four months from start to finish, many of your debts will be discharged. However, certain non-exempt assets will be sold by the bankruptcy trustee to pay creditors back.

Chapter 13 bankruptcy takes much longer — between three to five years. You do not sell your assets in Chapter 13 but rather make a repayment plan and stick to it for the duration of the bankruptcy.

While not without its challenges, such as its potential impact on your credit score and the sale of some of your assets, bankruptcy can relieve the pressure and stress of unpaid debts. When you finalize the bankruptcy, you can start over financially, although the bankruptcy will remain on your credit report for about ten years.  

Is Your Bankruptcy Filing Public Record?

Much of the information related to your bankruptcy case is a matter of public record. Bankruptcy is a legal process, and in large part it plays out through legal filings that your attorney will initiate with the court. These filings are accessible via the Public Access to Court Electronic Documents (PACER) system, the method that the federal courts use to store court documents. PACER is primarily used by attorneys as a method of conducting legal research and accessing court documents. While anyone can theoretically access it, most people outside of a related field are unfamiliar with the system. Moreover, in order to use PACER you need to register and obtain a password, and each document comes with a fee.

In short, while bankruptcy records are in the public domain, unless you are a prominent individual or there is another reason someone might be interested in your bankruptcy filing, it is unlikely that someone would know you filed for bankruptcy and actively take the time and effort to look it up.

Your bankruptcy filing is certainly not the kind of public information that is usually available via an easy internet search or on social media. That means that unless your friends and family are curious enough to create a PACER account and search for your name, they will not readily know that you filed for bankruptcy, and unless they pay the fee charged for downloading each document from your case docket, they will not have access to specific information in your court documents.  

Who Gets Informed When You File for Bankruptcy?

Certain parties who have an interest in your bankruptcy filing will get automatically informed when you file for bankruptcy. Primarily, your creditors will be informed when you file for bankruptcy, not only because their financial interest in the debt owed may be affected by your bankruptcy filing, but also because once the automatic stay goes into effect, they will have to cease all collection efforts. For this reason, they need to be appraised of your status as a bankruptcy filer.

Keep in mind that who is informed of your specific bankruptcy filing largely depends on who is your creditor, and what type of debt you have. For instance, if you owe debt related to a divorce settlement, your ex-spouse is a creditor, and they will be notified. If you are behind on your rent, your landlord may be notified of your bankruptcy filing. On the other hand, if your rent is up to date, your landlord will not automatically know that you filed for bankruptcy.

Additionally, anyone who runs a credit check can find out about your bankruptcy. You should know that public utilities cannot deny you service because you filed for bankruptcy, although they may require a deposit for future service.

Will Your Employer Know You Filed for Bankruptcy?

Whether your employer finds out about your bankruptcy is very much dependent on the circumstances of your case. Generally your employer would not be automatically notified that you filed for bankruptcy, unless they are a creditor, which is highly unlikely. If your wages are being garnished by your employer, the automatic stay would halt that process, so in that case your employer would be informed. A prospective employer might find out that you filed for bankruptcy, but only if they run a credit or background check.

Call a Kerrville, TX Bankruptcy Attorney 

If you are currently experiencing financial troubles or are unable to pay back mounting debt, the experienced Schertz, TX bankruptcy attorney at the Law Offices of Chance M. McGhee can help you file for bankruptcy and get your life back on track. Attorney Chance McGhee has substantial experience representing clients in Chapter 7 and Chapter 13 cases and is here to answer any questions you may have about the impact of bankruptcy on your personal and financial life. Call us at 210-342-3400 for a complimentary consultation.