The question of how much information you will have to disclose if you file a bankruptcy case is understandably a serious one for potential filers.
And to a certain extent, you're right; Bankruptcy is a public proceeding, and most of the information you file with the Court can be seen by anyone who chooses to go down to the Courthouse and look it up.
Nevertheless, I want to clear up some common misunderstandings:
First, your social security number will not be made public. It is seen by the Court and other participants in the case (for example, your creditors, who already know it), but it is never revealed in the documents that are part of the public record.
Second, your tax returns do not become part of the public record. You must provide a copy of your most recently filed federal return to the Trustee in your case, but it is not made public.
Third, the likelihood of you being "raked over the coals" at your Meeting of Creditors is very small. So long as you incurred your debt honestly (i.e. you fully intended to repay it when you incurred it), and you have been honest with the Court, you shouldn't have much reason to worry. In the unlikely event that any of your creditors appear, they are entitled to ask you five minutes' worth of factual questions.
With regard to the Trustee (who will be conducting the Meeting), my experience is that most Trustees are intelligent, reasonable people. He or she will ask if the information in your petition is accurate, plus some other simple questions. He or she might dig a little deeper into your factual situation, such as asking you to explain your income if it's confusing or how you arrived at the value of your car. But these are all things that you should be able to explain easily. Your Trustee is a busy person, and he or she doesn't want to waste his or her time with you unless there's a good reason.
So, common misconceptions aside, what kind of information will you have to make public? Here's a list that covers most peoples' situations:
Your name, any AKAs, your address, and whether you filed a previous case in the last eight years;Whether you owned any real estate in the past ten years, and the value of your current interest therein;All your personal property (cash, bank accounts, clothing & furniture, retirement accounts, vehicles, ownership interests in any businesses, etc) and its value;The names and addresses of all the businesses and people to whom you owe any money;Any co-debtors;Your anticipated average monthly income and expenses over the next year;The monthly average of your income, from all sources, for the six months' prior to filing;Your income for each of the prior three years;Whether you recently made any preferential payments, unusually large gifts, or transfers of property;Whether you recently have been sued, foreclosed on, repossessed from, levied, or garnished.There are several other details you must provide, but your lawyer will cover all that with you.
With regard to pay statements, the rules vary from Court to Court, but you should expect to have to give the Trustee at least two months' worth. He or she may also ask for bank statements, closing statements, or other documents.
It's true that quite a lot of information must be provided to the Court. But the good news is that figuring it all out and presenting it to the Court in the proper fashion is your lawyer's job. The bottom line, however, is that you shouldn't let concerns over making your information public keep you from fully enjoying the benefits that the Bankruptcy Court can provide.
Eric M. Boeing is a San Francisco and Oakland bankruptcy lawyer. Find him online at http://www.boeinglaw.com/. Initial consultations are always free.
