Bankruptcy Reports Are In The Public Domain

When you file bankruptcy, records of your proceedings are a matter of public record. Records are kept and reported for all individuals or businesses that either voluntarily or involuntarily file bankruptcy. Section 107 of the bankruptcy code requires that such information be available to those that wish to look it up. Although the general public can view your bankruptcy reports, it is very doubtful that embarrassing information will get into the hands of your friends and family. Your bankruptcy report will not have information concerning credit lines, payment history, and other similar concerns.

Your bankruptcy reports will be issued by the court that heard your case to one of the three major credit-reporting bureaus. These are Experian, TransUnion, and Equifax. A bankruptcy can stay on your credit report for seven to ten years, depending what type of bankruptcy you filed. This can result in difficulty obtain a car loan, home loan, or renting an apartment. Having your debts wiped clean through bankruptcy court serves to put creditors on notice that you have had difficulty repaying your debts. Future creditors are more likely to either refuse to extend credit or they will make you pay higher interest rates for they risk they are taking in extending you credit.

Despite having bankruptcy reports in your past, most loan companies would rather see the ability to pay and a good payment history after the bankruptcy. A clean record will assure lenders that the bankruptcy was an unfortunate but necessary action. Most are forgiving as long as you have a good history afterwards. Because of the discharge you obtained in bankruptcy, all future earnings will be free from the claims of past creditors. That means you may actually be a better risk than someone with lots of debts on their credit report.

Bankruptcy reports are made public for a variety of reasons. First, it is to forewarn potential creditors of past problems. Another reason for accessibility of this information is a red flag to investors. If a business files bankruptcy it could mean that the market is headed for a downturn and is a warning sign of events to come.