Will Filing for Bankruptcy Affect My Employment?
Filing for bankruptcy is a major decision that you will have to face. One common question that bankruptcy lawyers are asked is whether or not filing for bankruptcy will impact your employment prospects. It’s true that some employers conduct credit checks on their employees before hiring them. It is also true that creditors can garnish your wages if you don’t file for bankruptcy. In that case, your employer will definitely know about your current financial struggles. The same cannot be said of filing for bankruptcy. In this article, the Jacksonville bankruptcy attorneys at the Law Offices of Carol M. Galloway will discuss how employers might respond to bankruptcy.
Your employment and bankruptcy
Bankruptcy is the legal process of discharging your debts or entering into a repayment plan depending on what chapter you file under. Chapter 7, known as liquidation bankruptcy, discharges all non-secured debts against your assets. Chapter 13 involves a repayment plan to repay creditors some of what you owe. Chapter 7 and Chapter 13 are the most common types of bankruptcy that individuals file under.
While considering bankruptcy, one may ask how it will affect their job. The answer to this question is not necessarily straightforward. The answer will depend on your industry, job type, and the specifics of your bankruptcy case.
How will bankruptcy impact your current job?
The U.S. Bankruptcy Code offers protection to those who file for bankruptcy. Under section 525(b), your employer may not terminate your employment simply because you filed for bankruptcy. In most cases, employers aren’t aware that their employee has filed under bankruptcy. However, if a creditor files a lawsuit against you and obtains a judgment, they can contact your employer to garnish your wages. You have no legal obligation to disclose your bankruptcy to your employer. In most cases, they will never find out. You don’t want your creditor, however, to obtain a judgment against you. You can avoid this by filing for bankruptcy.
How will bankruptcy impact future job prospects?
Some employers will conduct credit checks on potential employees. A bankruptcy on your record may impact a potential employer’s decision to hire you. It is illegal for government employers to consider bankruptcy when hiring an employee. It is not illegal for private employers to use this information. While a bankruptcy cannot be the sole reason they deny your employment, it can factor into their decision to hire you.
Certain positions, especially those in the finance sector, may be more sensitive to a bankruptcy on your record than other potential employment opportunities. Bankruptcy is never grounds for the loss of a professional license. If you have a professional license, you don’t have to worry about losing it simply because you filed for bankruptcy.
Talk to a Jacksonville Bankruptcy Attorney Today
The Law Offices of Carol M. Galloway represent the interests of those who are filing under Chapter 7 or Chapter 13 bankruptcy in Jacksonville. Call our office today to schedule a free consultation, and we can begin discussing your path to financial freedom immediately.
