It’s normal to worry about will filing bankruptcy affect my employment status and who will find out about my bankruptcy filing. Many individuals who are considering filing for bankruptcy also worry about the effect of the bankruptcy on future employment. They are typically concerned with if a potential employer finds out about the bankruptcy filing; will the employer be deterred from hiring you? This is especially true if you are employed in a position of trust or employed to manage others money.
Will filing a chapter 13 bankruptcy affect your employment?
First, it is possible that your employer will find out about your Chapter 13 bankruptcy filing. However if you file a Chapter 13, the bankruptcy judge could order your Chapter 13 payments to be automatically deducted from your wages and sent to the bankruptcy court. Also, legally no employer can fire you solely because you filed for bankruptcy. An employer also cannot use a bankruptcy filing to change the terms or conditions of your employment, such as by reducing your salary or moving you to a lower position in the company.
If your employer does fire you after learning that you filed Chapter 13 bankruptcy; the employer is likely to blame the termination on other reasons, such as chronic tardiness or laziness. If you are fired shortly after your employer learns about your bankruptcy filing; and there are no other reasons for your termination. You may be able to sue the employer for wrongful termination.
Will filing a chapter 7 bankruptcy affect your employment?
If you file a Chapter 7, it’s likely that your employer will not find out about the bankruptcy. However, private employers can decide not to hire someone because of a bankruptcy in his or her past. Many private employers run a credit check on all job applicants. If your filing was recent enough, it will be on the credit report. Additionally, you could refuse to consent to a credit check, but an employer may refuse to hire anyone who does not consent to a credit check.
If you are concerned about the credit check; consider speaking openly to the employer about what is in your credit report. You could explain that the bankruptcy filing was a result of; a medical emergency, a divorce, a period of unemployment, etc., and that it should not reflect on your employability. Any employer will appreciate the candor.
Will filing bankruptcy affect your future employment?
You are also most likely concerned about the effect of the bankruptcy on your future employment. By law, if you apply for a job with a federal, state, or local agency; the agency cannot consider any bankruptcy filing when deciding whether or not to hire you. If you are uncertain about how a bankruptcy filing will affect you; you should speak with a bankruptcy attorney. If you’re in the Atlanta area, call the Atlanta Bankruptcy Attorneys at Holston & Huntley at (404) 620-3337. Our attorneys are experienced and can help find the right solution for you! Call us today to schedule a FREE consultation.