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Will Your Employer Find Out About Your Bankruptcy?

A bankruptcy is a private matter although bankruptcy court is a public arena. Your attorney will be working under a client confidentiality agreement in which the attorney and law firm is not to provide any information to unauthorized parties. Those who are employed and need to file bankruptcy may be concerned about the privacy issues regarding their employer. Many potential bankruptcy filers are afraid that it may impact their status at work if they have a negative mark such as a bankruptcy on their credit report.

The bankruptcy petition has a list of creditors who are specifically notified of the bankruptcy filing from the court system. The contact information provided on the bankruptcy petition for each creditor is used to send correspondence directly to any creditors that own debt that will be discharged in the bankruptcy. If your employer is not on the list, it is very unlikely that they will receive any proactive notification from the bankruptcy court about your bankruptcy filing. The bankruptcy court will only send notifications to the creditors listed in the bankruptcy and will also send correspondence to the bankruptcy filer themselves or an agent of the filer such as the attorney on record for the bankruptcy. Unless your employer regularly seeks out credit profiles of employees, it is unlikely that they will receive any proactive notification about your bankruptcy.

A more dangerous threat that you should be more concerned about contacting you through your employer are your creditors. Creditors may sometimes contact you via your employer if there is some record of employment address in their files. If a creditor has been contacting you to communicate with you about payment of a debt and cannot get in touch with you through your personal contact information, they may try and track you down through your employer. This is much more of a risk than your employer finding out about a bankruptcy filing. A creditor may pursue you through any avenue of communication that they have on file whether it is the contact information of a co-signer on your account, another user on your account, or an employer where they believe you are currently working. A bankruptcy will stop all collections activities and prevent the risk of this type of event from occurring.

 

 

Bankruptcy Law Professionals is a bankruptcy law firm located in Southern California with offices in Orange County and Riverside serving the counties of Los Angeles, San Bernardino, Riverside, and Orange. To schedule an appointment with our attorneys, contact us at (855) 257-7671.

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