Common bankruptcy myth- Everyone will find out if I file- No they won’t!

Even though a bankruptcy filing is public information, it is rare that anyone finds out that you have filed bankruptcy.  Your friends and family and neighbors will probably never know unless you tell them.  It is rare that people check the reports of who filed for bankruptcy.  Unless someone runs your credit, then it is unlikely that anyone will find out that you filed.

In San Diego the filings are listed in the “Daily Transcript” but not too many people read that paper.  Your employer will not be notified and he or she will probably never find out because an employer rarely runs your credit once you are hired.

Your employer cannot fire you if he does find out you filed as that is illegal.  If you have some secret security clearance that presumes you will not file then that would be an exception but you should be able to ascertain this from your employer contract.  Most people though do not have these security clearances.

Your landlord will also rarely find out because he also will not run your credit once you rent from him.  You can continue to rent from your landlord after a bankruptcy without a problem.  If he or she does find out that you filed bankruptcy it is illegal to evict you or discriminate against you in any way because of the bankruptcy.

Your friends and family also do not have to know unless you tell them.  In fact you can keep this financial decision private if you choose.  And your lawyer is not going to tell anyone because he is bound by client confidentiality.

Some people believe that everyone will find out if they file bankruptcy and that simply is not true.  Your secret will remain safe if you wish it to and usually no one will find out unless you tell them.  Once you file and rid yourself of unpayable debt you will just notice that you have eased your stress load and you have more money to pay your bills.  So go ahead and file and experience the freedom, liberation, and fresh start that bankruptcy can provide!

I am a bankruptcy attorney in San Diego.  Please visit my websites at www.farquharlaw.com or www.freshstartsandiego.com.  Or call my office for a free consultation at (619) 702-5015.

Call now for free credit report and analysis!  For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.

Landlord notification and bankruptcy

Your landlord will not be notified if you file bankruptcy in most cases.  That is because most people have month to month tenancies.  In these cases there is nothing to report.  There is no asset in the bankruptcy estate that is created or affected by a month to month tenancy.  Your landlord is not notified and you keep on renting and residing in your unit right through and after the bankruptcy.

If you have a lease then the lease is technically an asset of the bankruptcy estate that the trustee could sell to another party.  The reality is that residential leases rarely have any value to anyone so the trustee will not take any action when the lease is reported.  In those cases the landlords are notified of the bankruptcy and the lease is broken at the point of filing the bankruptcy.

Now as a tenant you can decide if you want to sign a new lease or continue living in the premises as a month to month tenant. The landlord though cannot evict you for filing bankruptcy as this would be bankruptcy discrimination and that is not allowed. If you are a good tenant and pay your rent and don’t make noise then in the vast majority of cases the landlords will not care if you stay on and continue renting.

Before I was a bankruptcy attorney I handled evictions for landlords.  Good quiet tenants who pay their rent and don’t disrupt other tenants simply don’t get evicted.  Landlords want these tenants to remain because they are sometimes hard to come by.  So pay your rent and don’t disturb the “quiet enjoyment” of the other tenants in the building and you will not get evicted for anything.

Remember that a landlord will not even know you filed if you have a month to mont.  With a lease he will need to be notified but then you are protected because he can’t discriminate against you for exercising your federal right to file for bankruptcy.  The remember too that if you are a good tenant it is unlikely that the landlord id even looking to evict you.

So don’t despair.  You can file bankruptcy and be safe in your home, condo, or apartment.

I am a San Diego bankruptcy attorney.  Please visit my website for further information at www.farquharlaw.com or www.freshstartsandiego.com.  Or call my office for a free consultation at (619) 702-5015.  Call now for free credit report and analysis!

For a free e-book: “13 THINGS YOU SHOULD DO TO PREPARE FOR YOUR BANKRUPTCY FILING” please send a request by e-mail to: farquharesq@yahoo.com.