How to Determine if a Company Filed for Bankruptcy: A Comprehensive Guide

When conducting research on a company, it is crucial to know whether that company has a history of filing for bankruptcy. This can provide valuable insights into the financial health and stability of the company as well as any potential risks. Here’s a comprehensive guide on how to check if a company has previously filed for bankruptcy and what to do if it has.

Where to Find Bankruptcy Filings

Several resources are available to determine if a company has filed for bankruptcy. These resources include public records, credit rating agencies, business databases, and state business registries. Let’s explore each in detail:

Public Records

Bankruptcy filings are considered public records in the United States. You can check the U.S. Bankruptcy Courts website for the district where the company is based. Each district has its own database of filings. This is a free service, but to access it, you need to understand the structure and search the relevant district.

PACER - Public Access to Court Electronic Records

PACER (Public Access to Court Electronic Records) is a service of the U.S. Judiciary that provides access to federal court records, including bankruptcy filings. You need to create an account to access it, and there may be a small fee associated with it. Searching through PACER can be complex, but it offers a detailed view of bankruptcy cases.

SEC Filings

If the company is publicly traded, you can search the Securities and Exchange Commission (SEC) database for any filings that mention bankruptcy. Look for 10-K or 8-K reports, which often disclose significant events, including bankruptcy. These reports are essential for investors and stakeholders.

News Articles

Searching for the company's name along with the term "bankruptcy" in news articles can provide information on past filings and any relevant legal proceedings. News sources often report on major financial issues, including bankruptcies.

Credit Rating Agencies

Credit rating agencies like Moody’s, Standard Poor’s, and Fitch may have reports on companies that include their bankruptcy history. These reports can provide detailed insights into the company's financial standing and any past insolvency issues.

Business Databases

Services like Dun Bradstreet, Bloomberg, or LexisNexis provide comprehensive information on companies, including bankruptcy history. While some of these services require a subscription, they offer a wealth of detailed information.

State Business Registries

Some states maintain databases of business filings that may include bankruptcy information. These can be accessed through the state government websites or specific business registration portals.

Bankruptcy Information in England and Wales

In England and Wales, the process of finding out if someone has filed for bankruptcy is slightly different:

The Gazette and the Individual Insolvency Register

The fact of bankruptcy automatically becomes a matter of public record upon a bankruptcy order. As a creditor, you can find out if the company or individual has been declared bankrupt through the following methods:

The Gazette: A legal notification that is published in the United Kingdom Gazette, stating the bankruptcy. Individual Insolvency Register: This can be accessed on the Insolvency Service website.

After a bankruptcy order is made, a record will be placed in The Gazette and the Individual Insolvency Register, ensuring transparency and public awareness.

Duration of Bankruptcy

The duration of a bankruptcy can vary, but in England and Wales, it is typically recorded for 6 years. The Individual Insolvency Register retains details for 15 months, including the automatic discharge from bankruptcy. However, if the bankrupt has behaved dishonestly or irresponsibly, the Official Receiver can apply for a Bankruptcy Restrictions Undertaking (BRU) or a Bankruptcy Restrictions Order (BRO), extending the automatic discharge.

Using The Gazette and the Individual Insolvency Register

As a creditor, you can use The Gazette and the Individual Insolvency Register to find out:

The person handling the bankrupt’s affairs, either the Official Receiver (OR) or an Independent Insolvency Practitioner (IP). You can contact the OR or the IP to submit your claim in the bankruptcy estate. If owed more than ￡1000, submit a formal proof of debt form. The OR or IP will contact all creditors if a dividend is to be declared.

Bankruptcy Information in Scotland and Northern Ireland

In Scotland, you can search the Register of Insolvencies kept by the Accountant in Bankruptcy (AiB). In Northern Ireland, you can access the Insolvency service page on the Department for the Economy’s website or call the Chancery Office at the High Court on 030 0200 7812.

By utilizing these resources, you can make informed decisions about the financial stability and reliability of a company or individual, minimizing potential risks associated with business dealings.