It is an extremely personal decision to file for bankruptcy. This is a difficult decision that can have a profound impact on your life. This decision can be bittersweet. You get to pay off your debts, but you may lose some of your personal belongings. Could one of the personal items you lose be your job? This blog will explain how bankruptcy filings can impact your job.
Your current employer is not legally required to know that you have filed for Chapter 7 bankruptcy or Chapter 13 bankruptcy. It is permitted to remain private, as with most personal matters. Even if you are employed by the government, it is against the law for an employer to fire you because you have filed for bankruptcy. Your bankruptcy filings will not affect your employer’s rights to modify the terms and conditions of your employment.
Your employer might become aware of your bankruptcy status in certain circumstances, but your employment rights are not affected. Your employer might become aware of your bankruptcy status if wages were garnished previously and they are no longer necessary. Your employer may legally be compelled to garnish your wages to pay child support or to repay a debt.
Employer discrimination law protects your debt status. This means that you can’t lose your job because of your bankruptcy status. But, let’s say you want to work in the private sector. If you have bad credit or bankruptcy history, your employer may ask you about your credit history before you apply for a job. This will not stand in your way unless it is directly related to the job you are applying for.
This article was written by Alla Tenina. Alla is the best bankruptcy attorney Los Angeles California, and the founder of Tenina Law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.