When Do You Have to Disclose a Bankruptcy?

Unlike a criminal conviction, word of your bankruptcy case may not necessarily spread readily. However, bankruptcy cases are a matter of public record. Public Access to Court Electronic Records (PACER) is a databank of publicly available court information and anyone with access to PACER can look up your bankruptcy documents. Additionally, it is possible to view these records at court clerks’ offices. However, most people who file for bankruptcy find that the only individuals who find out about the petition are those that the petitioner directly informed. Your bankruptcy attorney can let you know in which circumstances you may have to disclose the information.

Military Enlistment

Enlisting in the armed services is an exhaustive process that requires the disclosure of a great deal of personal information, including the existence of prior bankruptcies. If you plan on enlisting in the military, you can speak with your military recruiter about the branch’s financial requirements.

Security Clearance

If you are in the military or you are a civilian government employee who requires security clearance, then you may be required to disclose your prior bankruptcy cases. Having a bankruptcy on your record does not automatically mean that you cannot gain a particular security clearance. These decisions are generally made on a case-by-case basis.

Credit Applications

Rebuilding your credit history will be a priority after your debts are discharged. However, you should be able to apply for a new line of credit sooner than you might think. You will likely need to apply for a secured credit card initially. On your application, you’ll need to disclose your bankruptcy.

Employment Applications

Not every employer has job applications that ask questions about the applicants’ financial records. If yours does, consider asking your bankruptcy attorney for guidance. Failure to disclose the information or providing false information may later provide grounds for dismissal.

Since 1990, the bankruptcy attorneys of Cutler & Associates, Ltd. have been helping Chicago-area families move forward with life after bankruptcy. From your free initial consultation to the discharge of your debts, our bankruptcy attorneys will be there to answer your questions and guide you through the process.