Skip to main content

When your employer finds out about your bankruptcy

Many people who file for bankruptcy are stressed over the potential impact it may have on their job.

Relax.

No employer- government or private- may legally fire you, demote you, reduce your salary, and so forth just because you filed for bankruptcy. That doesn't mean, however, that they cant fire you for other valid reasons while you're going through bankruptcy.

An employer will often never even know that you filed for Chapter 7 bankruptcy. The only time they might uncover this knowledge is if a creditor has sued you prior to you filing and has obtained a judgment to garnish your wages. When you file for Chapter 7 bankruptcy, your employer will be notified to discontinue the wage garnishment. Regardless, it can't be used against you.

If you have a regular job and file for Chapter 13 bankruptcy, the court may order bankruptcy payments to be automatically deducted from your paycheck, therefore your employer will know.

In the hiring process, no government agency may take your bankruptcy into account when mulling over a decision to hire you. However, there is no law prohibiting a private employer from doing so. Many private employers conduct credit checks on job applicants, but need your permission. You can refuse, but your refusal may wind up costing you the job. It's best to be open about your bankruptcy in this situation. Employers looking for bookkeepers, accountants, or payroll personnel might not look favorably on a bankruptcy in your credit file.

Generally speaking, employers aren't too concerned about your financial history. They just care that you can do your job.

Comments

Popular posts from this blog

Your Rights When You're Pulled Over for a Supected DUI

Fact is, most people don't even know their rights if they're pulled over! Here's a quick list of the most important rights you need to know and how the conversation may go if you are pulled over:

"Do you know why I pulled you over?" It's typically the first thing you'll hear. It's also deliberately designed to get you to admit to certain behavior. Be polite and simply ask, "Why do you ask?" and then wait for a response. Do not comment. That phrase "anything you say can and will be used against you in a court of law" is truer than you'll ever know, trust us.

"Have you had anything to drink tonight?" If you truthfully have had nothing to drink that night, say, "No." If you've had something to drink, you don't have to share that information! Telling the officer that you've been drinking will be evidence used against you. Instead, say, "I have no statement to make." While it may seem unnatura…

Questioned by the Police? - Don't Forget Your Rights

One of the special things about our country's criminal justice system is that if you are suspected or accused of committing a crime, you have certain fundamental rights. Unfortunately though, many people aren't aware of their rights, or, in the head of the moment, they forget about those rights.

For instance, citizens who find themselves being questioned and in police custody may not even be aware that they have a basic fundamental right to have an attorney present any time they are being questioned by any branch of law enforcement.

Truth is, having an attorney present if you are being quested is vitally important.

Why is that?

For one thing, an experienced criminal defense attorney can help you from incriminating yourself, can make sure that you don't answer questions that are designed to trick you, and can keep officers from asking the same question over and over again. Bottom line - having a criminal defense attorney on your side can help make sure that you don't ma…

Auto Accidents and Traumatic Brain Injuries

Traumatic brain injuries (TBI) are responsible for the deaths of approximately 50,000 Americans each year and the hospitalizations of roughly 230,000 more. Many more victims go undiagnosed.

Auto accidents are one of the leading causes of TBI. Most TBI's are closed head injuries, which means that trauma sets the brain in motion inside the skull. The brain gets slammed against the interior surface of the skull, resulting in contusions and swelling. 
Trauma can also initiate rotational forces that twist and stretch the brain, which can damage axons. Brain neurons send messages via electrical impulses; axons are the carriers of these impulses. When axons are damaged, brain function is diminished. 
A condition called diffuse axonal injury (DAI) occurs on a cellular level and leaves blood vessels and major brain structures intact. This type of damage cannot be detected by MRIs or CT scans, making DAI vastly under diagnosed and under treated. 
Brain injuries are unlike injuries to other …