Will Filing For Bankruptcy Make Me Lose My Job Or Affect My Chances Of Getting A Job?
If you are struggling financially because of overwhelming debts, one of the options that can help you is bankruptcy. With a Chapter 7 bankruptcy, you can manage to have most, if not all, of your debts discharged. Debtors have no legal obligation to pay discharged debts.
On the other hand, with a Chapter 13 bankruptcy, you can have your debts re-arranged. When the court re-arranges your debts, you get a chance to pay back your creditors over time. Usually, Chapter 13 bankruptcy allows debtors to pay off debts over a period of three to five years. Additionally, once you are done paying off your debts according to your Chapter 13 repayment plan, any outstanding debt is usually forgiven.
However, as much as bankruptcy offers debtors freedom from debt and allows people to start over financially, some concerns need to be addressed. One of the main concerns that arise when you start thinking of filing either a Chapter 13 or Chapter 7 bankruptcy is how bankruptcy might negatively affect your job or chances of getting a job. So, can filing for bankruptcy make you lose your job or affect your chances of getting a job? Read on to find out.
Can an Employer Fire Me if I File for Bankruptcy?
The short answer to this is no. According to 11 U.S. Code § 525(a), governmental units are prohibited from terminating the employment of individuals solely because of a bankruptcy filing. When it comes to private employers, Section 525(b) states that,
“No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act….”
So, even if your employer finds out that you filed for bankruptcy, they cannot fire you based solely on that. However, it is vital to note that the law does not prevent your employer from firing you after you file for bankruptcy. If, after you file for bankruptcy, your boss finds another legitimate reason for firing you, they have the legal right to do so. Simply put, a bankruptcy on its own is not a legal cause for an employer to fire an employee.
Can I Get a Job After Filing for Bankruptcy?
According to 11 U.S. Code § 525, government agencies are prohibited from denying individuals employment based solely on their bankruptcy. However, private employers are not constrained by that same rule. After conducting a credit check, a private employer might choose not to hire you based on your credit report. An employer may reject you because of bad credit. Often, this happens to individuals looking to work in jobs that involve handling money, such as accounting jobs. Additionally, an employer may deny you employment if you refuse to consent to a credit check. However, the good news is, most employers base their hiring decisions on more than just an individual’s credit.
Contact Us for Help
If you are considering bankruptcy, but have some concerns that you would like addressed, contact one of our Lehighton & Carbon County bankruptcy attorneys today at 570-818-4888 to schedule a consultation.