Alabama Private Investigator Practice Exam

Are bankruptcy records considered public records?

1. Yes, they are public records

2. No, they are confidential

3. Yes, but access is restricted

4. No, they can only be accessed by attorneys

The correct answer is: Yes, they are public records

Bankruptcy records are indeed considered public records, meaning they are accessible to the general public. This classification exists because bankruptcy proceedings are designed to provide transparency in financial matters, allowing creditors and the public to understand the financial status of individuals or entities under bankruptcy. While anyone can access these records, it’s important to note that certain sensitive information may be protected by privacy laws or may be limited in access to specific entities, such as creditors or legal representatives. However, the overall filings, including petitions, schedules, and discharge orders, are publicly available, meaning anyone can inquire about or obtain copies of these documents. The reasoning for other options not reflecting the correct position stems from the nature of bankruptcy as a legal process that prioritizes transparency. By categorizing bankruptcy records as public records, the system allows for monitoring and accountability in financial dealings, which would not serve the intended purpose of the legal system if restricted to specific individuals or conditions.