Bankruptcy Record

      A debtor's bankruptcy record is pretty much public information just like other court proceedings are, this is why you should seek professional bankruptcy advice.   Whether the debtor files Chapter 7 bankruptcy asset liquidation, or Chapter 13 bankruptcy, debt reorganization and repayment, the bankruptcy record is shown on his credit record for ten years for Chapter 7 bankruptcy and seven years for Chapter 13 bankruptcy.  The individual cannot have this information removed from the bankruptcy record: all he can do is to try to mitigate the effects of the information by swiftly re-establishing a credit history and showing himself to be creditworthy. He can do this in a variety of ways.  Immediately after completing the bankruptcy proceeding, the individual should join a credit union or savings plans and make regular contributions.  This will show up on his credit record and will be a point in the filer's favor in order to offset the bankruptcy record.  The filer should also get a credit card and a small loan, which belonging to one of these plans might allow him to do rather easily.  Make sure to pay the monthly payment on time.  Even if the individual does not need the credit card or loan, it looks good on his credit report and shows that he is responsible and not a bad credit risk.  The individual cannot prove that he is creditworthy right away but he can begin the process and lay the framework for a good credit rating even with a bankruptcy record.

Your Bankruptcy Record is Public

     Once the individual has filed for bankruptcy, he cannot hide his bankruptcy record.  A bankruptcy filing is a matter of public information so your bankruptcy record is also public.  The details are available to anyone who knows how to find the information, whether they are online or not. There are many online websites where anyone can look up information on bankruptcies and other information. The filer cannot stop people from getting this kind of information when it is a matter of public record.  There is no way to file bankruptcy and to keep it a secret. There is a purpose to making a bankruptcy record public information.  It serves to let others, whether they are business partners or creditors, know what is happening.  The debtor's creditors and possibly, business partners, obviously have a stake in his asset liquidation and debt discharge.  A lender who is about to lend the individual a half-million dollars has a right to know if the individual filed for bankruptcy last year or is in the middle of a bankruptcy proceeding now.

What to do about Your Bankruptcy Record

     Since the bankruptcy filer can't hide the fact of his bankruptcy the best he can do is try to mitigate the effects.  As stated above, the faster he starts to re-establish himself as creditworthy, the better off he will be.  If the filer does the things discussed above, within two years, he shouldn't have any problems qualifying for credit, even for a home mortgage.  He won't be treated any differently than non-filers.  But he must take the time and expend the effort to re-establish good credit and prove himself to be creditworthy.  It won't happen automatically, you need to work to improve your bankruptcy record.