What Is A Bankruptcy List & What’s It Mean If You’re On One?

Published by Chris | Filed under Bankruptcy

A bankruptcy list is an index of people or companies who have filed for bankruptcy. When someone or a company files for bankruptcy, it means that such entity or person is incapable of, or is greatly unable to pay off loans taken, or unable to pay off their bills.

In these cases, debtors need to make a detailed filing of bankruptcy and must provide information such as name, gender, address, income, filing date, marital status and amount of lien. This claim must be filed with state, federal, or county courts, and the matter is subject to public concern and thus open for everyone to view. Thus, it is common for some companies to get information from these records and determine the worthiness of a person or company’s claim.

Bankruptcy Claims

The bankruptcy list is in essence an index of persons as well as companies who have at some point of time applied or filed bankruptcy claims. In this bankruptcy list, it is possible to find all of the information that the person filing for bankruptcy had provided to the courts when filing for bankruptcy, and there is also included filing type and what the claim status is. Thus, the status of a claim can either is that the filing has been filed, dismissed or discharged and this status is contained in the bankruptcy records and thus can become a part of any bankruptcy list. Also, the status of filing will mean that the claim has been submitted, while dismissed points to the case having been terminated without having been discharged, and in which the debts are deemed as being not in a position to be paid off. In case the status is mentioned as having been discharged, it means that the debts have been eliminated.

Assessing Credit Worthiness

The bankruptcy list is very important for businesses that depend on credit. A file for bankruptcy shows up on individual and company credit rating. Therefore, the bankruptcy list helps lenders form an opinion about the credit worthiness of an applicant who applies for credit. A lender such as a car dealer, mortgage financier, and credit card company makes great use of the bankruptcy list to determine the reliability of its customer. With the bankruptcy list, a lender can research credit histories of applicants so that they end up approving only those with good credit standing.

It is easy to see that bankruptcy lists allow many companies to identify people that have filed for bankruptcy and it is even possible to identify those persons or companies that have only recently filed for bankruptcy.

However, these bankruptcy list are mostly available only after paying a fee though they do contain exhaustive information as they are generally compiled from databases from the entire the country and contain information on millions of businesses as well as individuals, and these bankruptcy lists are even available sorted on status, address, name and even filing type and are constantly being updated from time to time.

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