Will my bankruptcy become public record and knowledge?

Yes and no. While your filing for bankruptcy will become part of the public record once your debts have been discharged, only creditors will have access to this information. This is not something that your neighbors or friends are likely to find out unless you tell them.

Now, in the real world, I suppose it would be possible, for someone with access to your mail to see letters from the bankruptcy courts, but that would probably be limited to the mailman, and I doubt he goes sniffing through everyone's mail.

Why Bankruptcy Goes on Your Record

The point of bankruptcy petitioners being public record is to inform future creditors of your financial situation so they can take that into account when determining how much credit to offer you, and at what rate. Typically, someone that has filed for bankruptcy will be a more risky investment, so your interest rates will be higher, but that does not mean you won't be granted credit in the future.

Impact on Your Credit

Depending on the type of bankruptcy you file, it will remain on your credit record for between seven and ten years. However, after one or two years, you will begin to see your credit come back quickly. If you file for a chapter 13 repayment plan, then you may see your credit score rise after sticking to the plan for only several months.

Deciding to file for bankruptcy is not a good thing for your credit record by any means, but often, the alternatives can be much much worse.

Good Luck.