Bankruptcy in Indiana – Who Needs to Know?

October 20, 2012 2:30 pm Published by

In the military, information is shared on a need-to-know basis.  In other words, only if you need a piece of information in order to carry out your job duties will you be allowed access to that information; otherwise, you won’t.

Over my 26 years as an Indianapolis bankruptcy lawyer, the one question I’ve found is on people’s minds when they’re deciding whether to file personal bankruptcy in Indiana is “Who needs to know?”  Unfortunately, all too often the fear of having their privacy compromised prevents people from taking advantage of Indiana’s bankruptcy safety net.

The fact is, as we attorneys in all five Zuckerberg bankruptcy law offices are quick to explain, bankruptcy procedures are a matter of public record.  That means that there’s no need-to-know standard when it comes to bankruptcy in Indiana.  On the other hand, reality is that unless you’re
a celebrity or running for public office,
it’s unlikely anyone will be searching those public records to find out about your bankruptcy. In fact, most Indiana newspapers stopped reporting bankruptcies many years ago!

As an example of what I mean, the other day I read about a gentleman who’s running for the office of North Carolina insurance commissioner.  Mr. Causey, it came to light, had filed bankruptcy twenty years ago because of a failing family business.  The only reason the issue of the bankruptcy was raised at all (as one of my Anderson bankruptcy lawyer colleagues pointed out) is that Causey is touting his record as a small business owner – otherwise the bankruptcy wouldn’t even have been a factor.

Since I’ve helped more than 30,000 individuals file Indiana personal bankruptcy, small business bankruptcy in Indiana, or both, I very well understand when clients who are unfamiliar with the new bankruptcy laws of Indiana worry that “everyone will know”.  I can, in all honesty, assure them, “No, they probably won’t!”

There is one need-to-know worry that I’d like to talk about with Bankruptcy in Indiana readers.  As bankrate.com explains, “A current employer can check an employee’s or potential empllyee’s credit report provided they have the employee’s written permission.”
 

With job loss being one of the top three cause of bankruptcy, the way hiring and firing relate to bankruptcy in Indiana is a subject about which I’m getting lots of questions.  Alert Staffing reports that 50%-75% of all companies review credit reports before hiring.  They feel they “need to know”! 

Remember, a credit report shows if someone is in need of payday loan debt help and even student debt help or help stopping foreclosure, and not only whether Chapter 7 bankruptcy or Chapter 13 bankruptcy has actually been filed.  It’s best to be upfront with a prospective employer and talk openly about the reasons for your debt problems and what steps you’ve taken to get back on your financial feet.

In summary, not everyone will know you’ve filed personal bankruptcy in Indiana, because they don’t “need to”.  You are the one who needs to know about the fresh financial start that can be the reward you reap from filing bankruptcy!

 


 

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This post was written by Mark Zuckerberg

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