Filing for bankruptcy is something that millions of Americans do each year. In fact, millions of people around the world file for bankruptcy to be free from debt. That said, bankruptcy isn’t something that should be taken lightly. Depending on the chapter of bankruptcy and when it was filed, it can remain on your record for up to seven years – or more.
So, are bankruptcy filings public record? The short answer is yes, but it gets more complicated than that. Read on to learn more about bankruptcy and how you can learn more about specific cases.
What Is Bankruptcy?
Bankruptcy helps people pay back their debts or sometimes even clear them when they can’t afford to pay through traditional methods. People tend to file for bankruptcy when they don’t have the financial means to pay off debts, and it’s something that businesses, individuals, and even nonprofits or government agencies can file for.
When someone files for bankruptcy they usually have to pay back the money on a payment plan, liquidate assets to pay the debt, or close their business. However, this depends on the type of bankruptcy that’s filed for.
Bankruptcy tends to remain on someone’s credit report for seven years, but after this period credit can start being built properly again.
What Are the Types of Bankruptcy?
Bankruptcy is broken down into several chapters. Each chapter is relevant for specific cases, but chapter 7 bankruptcy is the most common type.
This is because Chapter 7 bankruptcy is available for individuals and businesses and allows the entity to liquidate assets to be free of debt. In many cases, chapter 7 bankruptcy is used to wipe the slate clean.
The other types of bankruptcy include:
- Chapter 11: is used for corporations or individuals with a lot of debt. Restructures the debt so the payer can pay the remaining amount.
- Chapter 12: Provides debt relief to fishermen and farmers; functions as a simplified reorganization method.
- Chapter 13: Similar to Chapter 11, it is for sole proprietors or individuals with less than $2,750,000 in unsecured debt.
- Chapter 9: For municipalities that run out of funding or money to clear debts.
- Chapter 15: Used for international outstanding debts.
These are the most common types of bankruptcy that you’ll come across, but there can be some variations due to the uniqueness of each person’s situation.
Are Bankruptcy Records Public?
Bankruptcy filings are public records. While bankruptcies are public records, that doesn’t mean they remain public forever. Furthermore, there may be cases where you can’t view them because they’re sealed, or something else may be going on.
That said, you can usually find information about a bankruptcy within seven years of it happening. According to the Fair Credit Reporting Act (FCRA), this information is no longer public after this time. While you may still be able to view it, it can’t impact someone’s credit report, and you can’t use it against them during the hiring process.
How to Lookup Bankruptcy Records
When you want to look up bankruptcy records, you have a few options.
You can run a credit check on someone by pulling their credit information, which is common when you’re running a background check or pulling someone’s credit to loan them money or open a line of credit for them. While this is one of the easiest ways to view information about bankruptcy, it’s not the best because it’s only applicable in some situations.
The good news is that there is a better way. Because bankruptcy filings are public, you can use a public records search that lets you find information about a bankruptcy.
We recommend going this route because it won’t impact anyone’s credit report, you can find information available in all 50 states, and you can find more information and context around the bankruptcy. For example, when you use a reliable public records search tool you can find information about the court case and any settlement amounts.
Aside from a public records search tool, you can visit the courthouse where the bankruptcy case was heard. You’ll have to find the specific court, but once you do you can request access to the paperwork.
Find Bankruptcy Records Today
Bankruptcy is a public record, so you shouldn’t have any problems finding information about it. The only time you won’t be able to view records about bankruptcy is if it happened more than seven years ago. In these cases, even if you can see the records, you can’t use them against someone.
If you ever need to view bankruptcy filings, make sure you work with a reputable public records search tool for the best results.