Can Bankruptcy Affect My Job?

Bankruptcy is a legal tool that was intended to help the consumer, not harm them. Unfortunately, myths and misunderstandings about bankruptcy have led many people to have false beliefs about bankruptcy. People often wonder whether friends, family, or their employer will find out if they have filed for bankruptcy. Although bankruptcy filing records are public records, it is rare for people to have their information publicized.

Employee Protections

If you have or are considering filing for bankruptcy, your current employer should not have knowledge of your bankruptcy unless you inform them. However, if wage garnishment is involved in your debt resolution then it is possible your employer will find out about the filing. Fortunately, there are protections in place to prevent you from being fired or discriminated against soley based on your bankruptcy filing. It would be considered illegal discrimination, and grounds for a lawsuit if your employer does any of the following as a result of your bankruptcy filing:

• Terminates your employment
• Reduces your salary
• Demotes you
• Reduces your job responsibilities

These protections exist to protect consumers while they work to alleviate their debts. The benefits of bankruptcy often outweigh the misguided concerns people may have about bankruptcy. Contact our office to speak with a Sacramento bankruptcy lawyer about how we can help you get out of debt with ease.