Most people file bankruptcy because of job loss, high medical bills, or another event which was beyond their control. Nevertheless, some people equate bankruptcy filing with financial failure. So, the fact that Chapter 13 filings are a public record, at least for the most part, deters some people from filing. However, coronavirus has changed things. 90 percent of Americans say they are experiencing severe financial stress. So, people who looked down on bankruptcy filers before might have a different attitude now.

Chapter 13 Filings are Limited Public Records in Athens, GA

Additionally, as outlined below, Chapter 13 filings are limited public records. That allows many debtors to fly under the radar.

Additionally, the benefits of bankruptcy are very difficult to ignore. Bankruptcy’s Automatic Stay immediately stops repossession, foreclosure, wage garnishment, and other adverse actions which take financial stress to the next level. Chapter 13 also protects your family’s most valuable assets, like your retirement account, house, car, and personal possessions. These things could be vulnerable to creditor seizure outside bankruptcy.

An experienced Athens bankruptcy lawyer knows how to maximize these benefits while minimizing the ill effects of a bankruptcy filing. An attorney can strategically assign value to your assets and maximize the exemptions. Furthermore, a lawyer helps you recover more quickly from bankruptcy, so you get the fresh start you deserve.

Court Filings in Athens, GA

Technically, court filings and most other judicial records are publicly-accessible records. That’s a bit different from a public record.

In Georgia, some serious sex offender information is public record. Law enforcement agencies notify residents, and certain nearby businesses, like schools or daycares, if one of these individuals lives in the area or relocates to the area.

Federal civil court records are different. The Public Access to Court Electronic Information system limits instant document access to people with usernames and passwords. Official documents are available outside PACER, but the process is rather cumbersome. Large news outlets and other such organizations can access this information. But when individuals file bankruptcy, unless they are gazillionaires, that’s not newsworthy.

Occasionally, federal judges seal bankruptcy records. Normally, debtors must show good cause for the request. Embarrassment is usually not a good cause. Partial sealing is available in most cases. For example, the bankruptcy schedules often include some extremely personal information. Such data is relatively easy to contain.

341 Meeting in Athens, GA

The 341 meeting usually happens about six weeks after the petition is filed. Once again, the record of this meeting is publicly-accessible.

Typically, these meetings take place in office buildings, as opposed to the courthouse. In the post-9/11 world, many office buildings are closed to visitors. Furthermore, the trustee normally does not release scheduling information to the public. Only the debtor, the debtor’s Athens bankruptcy attorney, and perhaps a few creditors know the date, location, and time of the meeting. So, no one else will be there, or even know the meeting is taking place.

This relative privacy is important. At the 341 meeting, the parties usually go over the debtor’s income/expense information in depth. Additionally, the trustee sometimes inquires about potential bankruptcy fraud matters. Even if the debtor is innocent of such charges, as is almost always the case, most people do not want their neighbors or bosses to find out about such things.

Athens Bankruptcy Lawyers and Court Hearings

Under the Sixth Amendment, criminal trials must be public. So, criminal courts are usually open at all times and to all people.

Civil matters, including bankruptcy matters, are different. The Sixth Amendment is inapplicable. So, for security reasons, many civil courthouses are closed to the public. These buildings might also be closed for health and safety reasons.

Court transcripts are public record as well. However, like court filings, transcripts are not publicly available. Typically, only parties to the lawsuit may access them, and court reporters always charge hefty fees to provide them. 

Generally, an Athens bankruptcy attorney can either seal or redact court hearing transcripts. So, a local busybody could learn that a hearing took place and the result of that hearing, but the court would reveal no specifics.

Who Should & Should Not Know About Your Bankruptcy

If you are reading an article about whether or not Chapter 13 bankruptcy is public record, you might generally have some questions and concerns about who should know you’ve filed for bankruptcy.

There’s no way to determine with absolute confidence whether you should tell a particular individual about your bankruptcy simply by reading an article online. You need to carefully consider the specifics of your circumstances to determine if it’s advisable to tell certain people in your life about this particular financial situation.

That said, it’s important to know that in most cases, there are relatively few people who genuinely need to know you’re filing for bankruptcy. Remember this point if you have reason to suspect you could benefit from filing for Chapter 13 bankruptcy, but have been reluctant to do so out of embarrassment. There’s a good chance the vast majority of people you know will never be aware of your bankruptcy if you decide you don’t want them to be.

On the other hand, there may be some people who don’t necessarily need to know you’ve filed for bankruptcy, but who you might nevertheless believe have good reason to know about this decision. Potential examples include the following:

• Your children and any other close loved ones who depend on your income. Often, during the time after you file for bankruptcy when you will be repaying your debts, it’s necessary to make a range of sacrifices and lifestyle changes. These changes can impact not only you, but your kids and other such important people in your life as well. Instead of concealing the fact that you’ve filed for bankruptcy, it may be wise to tell these people about your choice as early as possible, as this will help them prepare accordingly.
• Trusted family members or friends who are either wealthy, have strong financial habits, or both. You must be careful when telling such people about your decision to file for bankruptcy, as you don’t want to damage your relationship with them by turning to them for financial support, particularly when you believe your ability to pay them back will be limited. That said, discussing the topic of bankruptcy with people you trust who thrive financially may be helpful, as they might be able to offer advice on budgeting and other topics that can reduce your chances of once again finding yourself in a difficult financial situation later in life.
• Any individuals you trust who you know won’t disclose your secrets and who you can rely on to listen to you when you are struggling. Although filing for bankruptcy will actually likely result in a much less stressful lifestyle in the long run, for understandable reasons, the experience of filing for bankruptcy and paying back your debts after doing so can seem overwhelming. If there is anyone in your life (such as a therapist or close confidant) who you strongly believe you can turn to when you simply need to vent a little bit, you might want to disclose the truth about your bankruptcy to them.

Just remember, the main point to keep in mind is that it’s highly likely that most people in your life don’t need to know about your bankruptcy. If you don’t want to mention it to them, you never have to. On top of that, because the process of finding records related to a bankruptcy filing is so tedious, there’s little chance that people who you want to keep your bankruptcy a secret from will ever learn about it.

Keeping Your Bankruptcy a Secret: Tips to Remember in Athens, GA

Once more, you might decide that you don’t want most people to be aware that you’ve filed for bankruptcy. You might thus wonder how to keep it a secret when you’ll have to make lifestyle adjustments that could theoretically indicate your financial situation has changed. Although it’s impossible to guarantee any given method will effectively help you conceal the truth about your financial circumstances, the following tips can likely help:

• Simply don’t mention it. You may be concerned about others learning of your bankruptcy, but odds are good most people are not paying as much attention to your financial situation as you assume they are. If anyone does notice you seem to be struggling financially, they likely won’t think much about it, and may only mention it to offer help.
• Make up another excuse for your lifestyle changes if some people do notice them. For example, if a nosy neighbor asks questions about your changing financial habits, a simple white lie can’t do any harm. Instead of admitting you’ve filed for bankruptcy, you can say you’re experimenting with a more frugal lifestyle to save for retirement.
• Don’t post too much about your lifestyle on social media. Doing so could give others a look into areas of your life that you would prefer to keep secret.

It’s worth reassuring yourself by considering how there are many people who file for bankruptcy and successfully manage to hide the fact from others. You can almost certainly do the same in most instances.

Call a Reputed Athens Bankruptcy Lawyer Today!

Chapter 13 filings and proceedings are publicly available, but they are not public record. For a free consultation with an experienced Athens bankruptcy attorney, contact Morgan & Morgan, Attorneys at Law, P.C. at (706) 843-2905. Convenient payment plans are available.

Originally published November 23, 2020 and updated on October 11, 2021.

Christopher Ross Morgan

Christopher Ross Morgan

Christopher Ross Morgan focuses on bankruptcy cases, specifically Chapter 7 and Chapter 13 cases. Christopher also takes on Disability and Workers’ Compensation cases. As one of the most accomplished Chapter 7 and Chapter 13 attorneys in Athens, Georgia, he has fought cases through jury trials and argued cases in front of the U.S. District Court, Northern and Middle District of Georgia.