Being in a financial situation where you need to file for bankruptcy can be stressful enough. Adding to this the worry that you may risk being fired for doing so will only add to this tension. The good news is that it is unlikely that you would ever be fired because of your decision to file for bankruptcy. However, before you do decide to file for bankruptcy, it is a good idea to be aware of the ways that your employer could use your decision against you, and other implications that filing might have.
Can I be discriminated against because I filed for bankruptcy?
Bankruptcy is a positive decision to make. It’s a way for people who are struggling financially to reorganize their debts and to reallocate their income in order to receive a fresh start. Unfortunately, however, there is a stigma attached to it. But there is also a legal prohibition against using a person’s bankruptcy filing as a way to discriminate against him or her. This can be difficult to enforce, but it is a protection that can be used if you believe that you are being discriminated against purely because you filed for bankruptcy.
Will my employer learn about my bankruptcy filing?
This depends on which chapter of bankruptcy you choose to file. In Chapter 7 filings, your employer will likely never find out unless they see a notice in a local publication. However, Chapter 13 usually involves the attachment of your wages, so your employer will have to be involved.
If you have any questions or concerns about how filing for bankruptcy will affect your career, it is important to conduct adequate research on how the laws apply. Contact an experienced bankruptcy attorney at the Quinn Law Firm for more information or for a free consultation.
Source: The Balance, “Will You Lose Your Job If You File Bankruptcy?” accessed Nov. 29, 2017