When you are in debt, the idea of filing for bankruptcy may be a last resort. However, this process can be incredibly beneficial in helping you regain control of your finances. There may be one concern preventing you from initiating this process – your employer. You may be worried that your employer will discover your filing, and you may be fired as a result. If this reflects your circumstances, you’ll want to keep reading to learn whether or not you can be penalized by your employer for pursuing a bankruptcy filing, as well as the benefits of working with a Memphis, Tennessee consumer bankruptcy lawyer to help guide you through the filing process.
Will I Be Fired if I Declare Bankruptcy?
In general, it is illegal and considered discrimination for an employer to fire an employee simply for declaring bankruptcy. Additionally, your employer cannot retaliate if you file by reducing your salary or demoting your position.
It’s imperative to understand that, in most instances, your employer won’t even know that you’ve filed for bankruptcy in Memphis. This is because the trustee assigned to your case likely will not contact your employer, nor will they send out letter notices of your filing to anyone other than creditors.
As you may know, filings are considered public records. As such, your company could technically search through the database to learn whether or not you’ve filed. This system, however, isn’t easy to navigate, so they likely will not go through the hassle of looking.
However, your employer can still uncover your filing in other ways. If your wages are being garnished, you must inform your employer for the automatic stay to go into effect. Additionally, depending on the specifics of your Chapter 13 repayment plan, you may find that
Can Filing Impact My Future Employment Opportunities?
While you cannot be fired from your current position for declaring bankruptcy, you may be dismayed to discover that this process could impact your future employment opportunities. In general, you’ll find that any government organization cannot take your bankruptcy filing into consideration when you are applying for employment. However, private employers are not held to the same rules.
As such, if an employer decides to run a credit check on you, they may discover your previous filing, which can be used against you. An employer cannot run a credit check without consent; however, if you do not agree, they may no longer consider you an applicant. However, you should note that most employers only run credit checks for positions that require money handling, like accounting or payroll.
Filing for bankruptcy can be an overwhelming and often confusing process. That is why working with an experienced bankruptcy attorney with the Arnold Law Firm is in your best interest. Our team understands how difficult these matters can be to navigate, which is why our team is committed to making this process as simple as possible. When you need help, contact us to learn how we can represent you.
