How Bankruptcy Affects Your Job

Filing for bankruptcy is a difficult decision, but it may be your best option if you are drowning in debt. Many people believe that bankruptcy is a negative process. The truth is that it is a legal alternative that will allow you to get rid of most of your debts. After your debt discharge, you will have a fresh start and will be able to rebuild your finances from the ground up.

However, this Los Angeles bankruptcy lawyer notes that many people fear filing for bankruptcy because of its effects on their employment. While it is true that the repercussions of bankruptcy may follow you for up to 10 years, the process may not affect your job as much as you think.
Read on if you want to know if you could lose your job after filing for bankruptcy and learn about your rights.

Will you lose your job due to bankruptcy?

After filing for bankruptcy, you don't have to worry about losing your job. No employer can fire you just for filing bankruptcy. Doing so would be considered a discriminatory act against you, and you could file a lawsuit for compensation.

Likewise, your employer cannot reduce your salary, demote you, or take away your responsibilities just because you filed for bankruptcy.

However, keep in mind that your employer will be free to take such actions if it has other valid reasons for doing so. For example, if you are late, misbehave at work, or are incompetent, bankruptcy won't shield you.

If you were fired shortly after your bankruptcy filing, and you suspect you have a case of economic discrimination, talking to an experienced Los Angeles bankruptcy attorney might be a good decision. In Los Angeles, most law firms, such as KT Bankruptcy Lawyer, offer free consultations. Don't hesitate to contact them if you have further questions.

Do you have to notify your employer about your filing?

In the vast majority of cases, you will not have to notify your employer of your filing. Nor will the court notify your employer of your bankruptcy filing. However, your employer may find out about your filing in some cases.

For example, bankruptcy will stop all types of debt collection actions, such as wage garnishments. If you have a wage garnishment, your employer will be notified of your filing to lift the garnishment.

In some cases, if you file for Chapter 13 bankruptcy, your employer will be notified. This happens because the judge may order that your repayment plan payments be deducted directly from your wages.
​
Finally, if you owe your employer money, it will count as one of your creditors. Therefore, it will be notified of your filing by the bankruptcy court.

Will bankruptcy affect my future employment?

You may be concerned that you may not be able to get a job in the future due to your filing. No state, federal or government employer can consider bankruptcy before hiring you. However, private companies may.

But you may not have to worry too much. 25% of employers will check your credit before hiring you for some positions. Only 6% will perform this investigation on all jobs.
​
Perhaps, when applying for jobs that carry a financial responsibility, bankruptcy may affect your chances of getting hired. But if you apply for non-financial positions, bankruptcy should not affect you in any way.

Before you decide, learn more about bankruptcY

If you still doubt whether you should file bankruptcy to get rid of your debts, visit: https://legalfacts.org/es/abogado-de-bancarrota/ to learn more about the benefits of bankruptcy.
​
At Legal Facts, you can connect with a trustworthy attorney in the language of your choice. ¡Hablamos Español!

How to find an attorney near you?

Finding a lawyer near you has never been easier. With a simple Google search, you can find multiple legal professionals ready to help you.
​
Most modern lawyers invest in Law Firm SEO Agencies to increase their online rankings and reach more clients.

If you are a lawyer, this might be the next step to take your business to the next level.