Who Knows? More Like, Who Cares If You File a Las Vegas Bankruptcy?

People think filing bankruptcy in Las Vegas is a financial walk of shame, as though they are somehow at fault for losing their jobs or contracting diseases.

But if you stop and think about it, there really isn’t anything shameful about declaring bankruptcy and moving on. It’s worse to suffer through excessive debt than it is to discharge it and get a clean start. Nevertheless, people frequently ask Las Vegas bankruptcy lawyers, “Who will find out if I file for bankruptcy?” or they are concerned their employers will learn of it and take adverse action against them.

The short answer is, “Why would anyone think you did?”

Moreover, your bankruptcy would be one of the hundreds of thousands of bankruptcies filed each year throughout the country. It’s not finding a needle in a haystack, but if no one suspects the needle’s there, no one’s going to look for it.

In fairness to the question:

Everyone can find out about any bankruptcy as they are matters of the public record. Records of bankruptcy proceedings are seldom if ever sealed by the court.
All your creditors will find out about your filing, though rest assured they don’t get paid to tell anyone. However, if you default on a debt and they call anyone close to you (relatives, close friends, etc.), then they’ve violated the Fair Debt Collection Practices Act, which costs them money.
The IRS and other government entities are notified.
If yours is a Chapter 13 case, your employer will find out if your payments are deducted from your income and sent to the Trustee. This usually helps ensure your bankruptcy is successful, which is why bankruptcy courts require it.
If you are famous, then all bets are off. Then again, famous people often have public relations agents to speak for them.
We recognize your desire to keep your financial business private. It’s ingrained in American culture, but no one is going to ask anyone out of the blue whether they declared bankruptcy. It just doesn’t come up, and people don’t care enough to comb through public records.

For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Freedom Law Firm Las Vegas bankruptcy attorney for a free initial consultation by calling us at 702-903-1354.

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