For many, deciding to file for bankruptcy is not something made lightly. Despite the financial relief it can provide, many feel shame or guilt for filing. It’s also not uncommon for filers to worry about the impact it will have on their lives, including whether or not this will impact their employment opportunities. The following blog explores what you should know about these matters and why it’s in your best interest to connect with a Memphis, TN consumer bankruptcy attorney who can help you through the process of filing to ensure your bankruptcy goes as smoothly as possible.
Will My Employer Know if I File Bankruptcy?
When you file for bankruptcy, you may worry that your current employer will discover your filing. It’s important to understand that all filings are public records, meaning the details of your case are available to those who search for it. Certain elements, like sensitive information, will be redacted.
However, just because this information is public record does not mean it’s easily accessible. Trying to look up someone’s bankruptcy records is a difficult process.
It’s also important to understand that, in certain instances, your employer will discover that you have filed for Chapter 13. This is because they must deduct a portion of your wages to send to your bankruptcy trustee, who will then distribute the funds to your creditors. If you do not file for Chapter 13, they can still learn about your filing if your wages are being garnished or you owe your employer money.
Even if your employer discovers that you have filed for bankruptcy, you cannot be fired because of this. Additionally, they cannot punish you by demoting you or reducing your pay because of your decision to file.
Can Filing Impact Employment Opportunities?
It’s important to understand that if you file for bankruptcy, potential employers in the public sector cannot take your bankruptcy filing into consideration when hiring you. However, private employers are not bound by the same rule. As such, if your employer wants to run a credit check on you, they can deny you employment if you have a bankruptcy history or do not consent to the credit check because of past filings. If you are looking for a new job, it’s important to understand that you will likely have to discuss your credit history, especially if you are applying for a job in the financial field. As such, it’s best to be open and honest with your potential employer.
If you are filing for bankruptcy, it’s important to understand that you should not go through this process alone. It is imperative to connect with an experienced lawyer who can help make this process go as smoothly as possible. Unfortunately, if you file for bankruptcy on your own, you are likely going to make errors that invalidate your case. As a result, you will not experience any relief. However, when you work with the Arnold Law Firm, you can trust that your case is in good hands. Connect with us today to learn how we can assist you through these matters.
