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Who will know about this?

Anyone who wants to bother to check the bankruptcy court files could see your file, but I never have had anyone tell me that this was a problem. All of your creditors will be notified and the rules require that several state and local government entities (the IRS, SC/NC Department of Revenue) be notified, I assume to give them one last chance to not let you slip through the cracks, BUT it also protects you because you would want any problems with them to be dealt with in the bankruptcy instead of surprising you later when you have started over.

Your creditors and anyone else who knows about the bankruptcy can tell their people. It is not illegal. However, normally, it is not exciting news that you have filed bankruptcy. I have been at the grocery store and seen five of my former clients in there at the same time. Not to belittle the seriousness of it, but it’s just not sexy news that someone has filed bankruptcy, in most circles.

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  • Can I go to Jail for not Paying my Bills?

    No, not unless you committed a crime in the creation of the debt (for example, fraud). Simply borrowing money and not being able to pay it back is not a crime. Many creditors representatives will tell you lies on the telephone and say that they will have you put in jail. Perhaps they are too ignorant to know they are wrong or that it is illegal for them even to say that. See More Bankruptcy Q&A