Can I be Fired for Declaring Chapter 13 Bankruptcy?

There are several unnecessary worries when deciding to file for Chapter 13 bankruptcy. While keeping your job is of the utmost importance, you should find solace in the fact that you can't be fired solely for filing bankruptcy. In fact, if an employer fires you for no other reason than bankruptcy, you may have an illegal discrimination case on your hands.

Chapter 13 Bankruptcy and Work

Since Chapter 13 bankruptcy is a part of the public record it's not difficult for your employer to find out that you have filed bankruptcy. However, it's much more common for a hiring manager to check the financial records of an individual during the hiring process, so it's likely that your manager won't even find out about the bankruptcy unless they specifically seek it out. An exception to this is if you owe your employer money and have listed them as a creditor when filing for Chapter 13 bankruptcy. Additionally, if the bankruptcy judge in your case orders Chapter 13 payments to be deducted from your paycheck, they are likely to learn of your bankruptcy.

Who Else Finds Out About My Bankruptcy

Again, because they are public record, anyone has the ability to view your paperwork filed with the county clerk where you live. Specific parties to your bankruptcy will be the only entities, however, that are actually mailed a notice that you are declaring bankruptcy. These notifications, called a Notice of Commencement of Case are sent to anyone you outlined as a creditor while filling out your bankruptcy notification.

How Will Bankruptcy Affect Future Employment?

While bankruptcy should not affect your current position, it may have negative effects on future jobs. It's true that federal, state, and local governments can't use this information against your candidacy, private employers may decline your application should they check your credit as a part of the application process. If you have filed bankruptcy and are searching for a new position, it's usually best to be forthcoming about the bankruptcy before the company runs your credit history. By being proactive you'll ensure your employer that you have nothing to hide and that you have taken the necessary steps to eliminate your debt issues.

California Bankruptcy Attorneys

If you are struggling with debt, do not let your current employer finding out limit your debt relief options. Contact a California Bankruptcy lawyer to discuss your situation and discover if Chapter 13 bankruptcy is in your best interest. An experienced bankruptcy attorney is a crucial element in successfully eliminating certain types of debt using the US Bankruptcy Code. If you have felt you have been wrongfully terminated from your position due to filing bankruptcy your bankruptcy attorney will also be able to recommend an attorney specializing in employment discrimination.

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