Can You Lose Your Job If You Filed for Bankruptcy?
If you have filed for bankruptcy, are you worried that an employer can fire you if they found out about your bankruptcy? The answer is no. Federal law prohibits any employer from discriminating against you because you filed bankruptcy.
Protection Against Termination
Although bankruptcy carries a social stigma, it provides a legitimate means for people to get rid of debt. The law protects employees from unfair treatment, termination, or adverse actions simply due to the fact that they filed for bankruptcy.
If you were fired, discriminated against, denied promotion, or demoted because of your bankruptcy, your employer may be breaking the law.
Are Employers Required to Know About My Bankruptcy?
Employers do not have a legal right to know whether a worker has filed for bankruptcy, although they may find out through other ways. If you owe money to your employer or if your wages are being garnished, your employer may be notified when you file for bankruptcy.
What About When Applying for Jobs?
While the law protects those who are already employed, this protection does not cover those who are looking for employment.
Private employers can run background checks and may choose not to hire you if they see a bankruptcy on your report.
However, government employers may not refuse to hire somebody solely because they have filed for bankruptcy in the past.
Worried About Your Debts? Call Us for Help.
If you are dealing with debt and are worried about the effects of bankruptcy on your life, give us a call to discuss your concerns. We can review your situation and help you decide whether filing for bankruptcy can benefit you.