- August 30, 2022
- Thomas Adam
In order to file for bankruptcy in Florida, you must choose one of the state’s bankruptcy courts. Once you have made your choice, the court will assign you a case number and will begin to process your case.
However, given that bankruptcy is often available in public records, many wonder what impact that may have on their financial future. This article should help clear the air a bit, by letting you understand who will know about your bankruptcy and what they can do with that information.
Who Can See Your Bankruptcy Filing?
1. Your Friends and Family
If you cosigned a loan with your friends or family, they will be notified of your bankruptcy filing. This is because the co-signer is responsible for the debt if the primary borrower defaults. By filing for bankruptcy, you are essentially declaring that you are unable to pay back the loan, which will also impact your cosigners, and their credit scores. Therefore, it is important, in this case, that the court notify them about your debt situation as soon as you file for bankruptcy.
Your other friends and family members are, however, not notified. But, since bankruptcy records are a matter of public record, they can be accessed by anyone who requests them from the court. However, it is highly unlikely that someone would go searching for bankruptcy records unless they had a specific reason to do so.
2. The IRS
Just as is the case with friends and family, the IRS is not notified of your bankruptcy filing unless you list them on your bankruptcy filing. Then, they will be automatically notified by the bankruptcy court. As such, if you are also trying to discharge tax debt, you will need to list the IRS on your bankruptcy petition. If you do not list the IRS on your petition, they will not be notified of your bankruptcy and will continue to pursue collection actions against you.
If you do not list the IRS on your bankruptcy petition, however, and you are audited by the IRS at a future time, the IRS may also search public records to see the details of your bankruptcy.
3. Your Creditors
If you file for bankruptcy, all of your creditors will be notified. This is because bankruptcy is a legal proceeding in which you are required to disclose all of your debts and assets. Creditors have a legal right to be notified of any bankruptcy filing, so that they can protect their interests. Bankruptcy also triggers a “bankruptcy stay,” or “automatic stay,” which prohibits creditors from taking any action against you, such as garnishing your wages or seizing your assets.
Contact a Bankruptcy Lawyer in Florida Today
You should know that there are just a very small number of people who will be notified if you file for bankruptcy in Florida. While other people may know about your bankruptcy filing if they actively seek out that information, it is unlikely that anyone would want to do that.
If you have any questions about who will know if you file for bankruptcy in Florida, be sure to speak with an attorney at our firm. We would be happy to learn more about your specific situation and start taking steps to help you achieve the future you desire.