When a debtor files for bankruptcy, their debts are discharged, meaning they are no longer due. Either the court establishes a repayment plan for the debtor to repay debts in a more manageable way based on their current income and circumstances, or the court discharges debts and sells assets to pay creditors.
The court issues an order preventing creditors from pursuing legal action, making phone calls, writing letters, or using other means of contact in an effort to recoup the debts that have been dismissed.
Numerous factors can lead a person to declare bankruptcy. Among the more widespread explanations are:
- Unemployment
- Medical costs
- Personal consumer credit lines that have been overdrawn
- Marital issues, such as separation or divorce
Although declaring bankruptcy is not often a decision that people make lightly, the fact that someone has done so to get out of debt may be of interest to others who are curious about their financial background and present financial situation. You might be wondering how to find bankruptcy records or do a bankruptcy filing search.
Federal bankruptcy courts only have jurisdiction over bankruptcy matters. The public can access bankruptcy documents, which can be useful when making financial decisions. You might wish to learn if someone filed for bankruptcy for several reasons. Some of the more common causes are:
- Examining a potential business partner’s financial background;
- Deciding whether lending money to someone is a wise move; or
- Curiosity about a company’s financial past.
When investigating whether someone filed for bankruptcy, you should investigate the person’s filing date and motivations. A bankruptcy filing that is more recent than one that is several years old suggests a more fragile situation. Additionally, declaring bankruptcy due to unpaid medical bills indicates a different financial scenario than declaring bankruptcy due to excessive credit card use.
Can I Check Someone’s Bankruptcy Status Online?
The public has access to every document submitted in a bankruptcy procedure. You can do a bankruptcy search by name and look at bankruptcy records online via the Public Access to Court Electronic Records (PACER) service. To search for and find bankruptcy court cases, all that is required is an account. Each page read through the system is subject to a fee from PACER.
You can locate the details you require by conducting a bankruptcy case number search if you know the case number. Calling a toll-free number will connect you to an automated system where you can get the following data using the case number, full name, or social security number:
- Identity of the debtor(s);
- When the bankruptcy petition was submitted;
- Whatever bankruptcy chapter the petition was filed under;
- Name and contact information for the debtor’s lawyer;
- The bankruptcy trustee’s name;
- The judge’s given name;
- Dates for discharge and closure;
- Existence or absence of assets;
- Circumstance; and
- Case conclusion.
Why Does Bankruptcy Appear on a Public Record Search?
More than 500,000 Americans have filed for bankruptcy in recent years. Many individuals who have gone through difficult bankruptcy processes are unaware that their records are public information. In bankruptcy situations, privacy is not protected by state or federal law.
A person or organization can desire to carry out a bankruptcy filing public record search for several reasons, such as:
- A prospective employer wants to run a thorough background check.
- When considering a person’s application for a license to practice in their field, a professional licensing committee will frequently inquire (such as a lawyer or a doctor).
- A credit card or loan provider almost always does a credit check to evaluate eligibility for authorizing a loan or credit limit.
- A person thinking about investing in a certain firm will typically want to know more about its financial history.
Where Can I Find Bankruptcy Records?
The National Archives, Public Access to Court Electronic Documents (PACER), a federal judicial service, and numerous websites that provide search services for a small price can all be used to locate bankruptcy records. By way of the U.S. On the National Archives website, you can acquire bankruptcy documents by state online, but you’ll need some necessary details, such as:
- The tax ID number of a business
- The case number that the court assigned to the bankruptcy case
- Name and, in some situations, the Social Security Number of the individual
Additionally, be aware of the court where the petition was filed. The National Archives currently has 14 regional records service sites where you can get physical copies of all bankruptcy records for cases processed in that region.
Records of bankruptcies are kept on a person’s credit file for ten years. Information about bankruptcies will frequently be found in the “public records section” of a credit report. Tax liens, mechanics liens, and child support delinquency judgments are among the information offered for public access. You cannot waive the 10-year recording requirement.
When examining a bankruptcy record, there are many factors to take into account. The reason a person filed for bankruptcy (student debts versus credit cards) and the amount of time that has gone since the filing are some mitigating factors that lessen the impact of bankruptcy (1 year vs. 30 years).
Most cases are filed under one of the Bankruptcy Code’s three primary chapters, which are:
- Chapter 7 – Business and individual liquidation bankruptcy
- Chapter 13 – Repayment plan bankruptcy is best for people with stable incomes and businesses looking to restructure.
According to studies, Chapter 7 bankruptcy cases make up about 65% of individual consumer bankruptcy filings. Fortunately, newly settled Chapter 7 and Chapter 13 actions are not accessible through most websites, which is good news for people who have just filed for bankruptcy and want to keep their records secret. However, the data may typically be accessed in online newspapers’ business sections if a creditor, employer, or professional license administration needs to view them.
However, there are furthermore four additional bankruptcy chapters that are immediately accessible, including:
- Commercial organizations use Chapter 11 to pay off their obligations.
- Municipalities, which include cities and towns, are covered by Chapter 9.
- Farmers and fishermen use Chapter 12 to pay off their debts over a period of years.
- Chapter 15 is used when the debtor is located overseas, such as when a member of the military is stationed abroad.
What Information Do I Need To Find Out If Someone Filed for Bankruptcy?
Very little information is needed to begin investigating whether someone has filed for bankruptcy. Bankruptcy courts, which are federal courts, are where bankruptcy petitions are filed. As a result, you must find the federal district court in the city where the subject of your interest is located.
Then, call the court to get the case number using the person’s full name, social security number, or, if you are looking into a business, the tax ID number.
The PACER system can access further information online with the case number. Additionally, you can access the bankruptcy record in person at the courts.
Do I Need a Lawyer to Find Out If Someone Filed for Bankruptcy?
The method of looking up bankruptcy records is typically simple. The data is easily accessible and a matter of public record, both offline and online.
However, it is a good idea to get in touch with a bankruptcy lawyer for guidance and assistance if you are curious about someone or a company’s bankruptcy history due to a legal issue or because you may be considering doing business with them.
An adept lawyer can assist you in accessing and obtaining crucial data from the bankruptcy record so that you can make an educated choice about how to proceed with the specific person. In court procedures, bankruptcy records are frequently introduced as evidence. You can look through the records with the aid of a bankruptcy attorney and decide whether the information is pertinent to your specific situation.
Last but not least, a lawyer can offer you the guidance and assistance required to safeguard your rights in the case of a lawsuit if any legal concerns or conflicts emerge.
