Who Receives Notice of My Bankruptcy After I File?

One of the most frequently asked questions from our Bankruptcy clients is, "Who receives notice of the Bankruptcy case?"  What the client is really asking is, "Who will find out about my Bankruptcy case?"

While the Bankruptcy process is a public legal proceeding, whether filed under Chapter 7 or Chapter 13, the actual filing is typically very confidential. The Bankruptcy laws require the Court to send notices of your case to you, your attorney, the Bankruptcy Trustee assigned to your case, any co-signors or co-debtors, and each creditor listed in your Bankruptcy documents.  Your employer, family members, and neighbors are not notified, unless they are financially involved in some way with your Bankruptcy case.  If you file a Chapter 13 Bankruptcy, your payroll department may be notified, as the Courts now require Wage Orders to fund the Chapter 13 Plan.  There are ways to avoid this, but you will need to contact our office to discuss this important matter.

The Bankruptcy laws require you to submit a list of the names and addresses for every individual or business creditor you owe on the date you file your Bankruptcy case.  It is important to list everyone to the best of your knowledge.  Failure to do so could result in penalties, including criminal sanctions.  The Bankruptcy Court then notifies your creditors of the case and informs them of the Bankruptcy Court's legal injunction (known as the "automatic stay protection"), which prohibits any and all collection activity during the case.

Years ago, Bankruptcy filings would be published in the "public notices" section of local newspapers.  Times have changed.  Unemployment has risen, the economy has nearly crashed, and foreclosures continue to increase.  Bankruptcy has become a necessary part of our lives.  Last year, more than 1.5 million Bankruptcy cases were filed.  Consequently, fewer and fewer papers published notices, as it is very expensive and time consuming to publish these mounting filings.  Unless you are a public figure or your Bankruptcy case is somehow newsworthy, it likely will not appear in any section of a newspaper.

If you are concerned that filing Bankruptcy will cause embarrassment or other difficulties, call the Law Office of Nicholas R. Westbrook at (713) 893-6204 and get a free legal consultation.  We can discuss the best way to resolve your financial problems quickly and quietly.  As an experienced and client-oriented Houston Bankruptcy Attorney, Mr. Westbrook will guide you through this difficult process and help you gain a fresh start.  Stop letting debt ruin your life.