Will Bankruptcy Affect My Job?

If you are filing for bankruptcy, can your employer act against you?

Filing for bankruptcy can be an intimidating experience, as well as an embarrassing one that you hope to keep private. If you are currently working, you may have concerns about how filing for bankruptcy will impact your employment status, as well as whether or not your employer can fire you for filing. Here is an overview of what you should know about how filing for bankruptcy could affect your job and your ability to seek employment in the future. For more answers that are specific to your situation, call our experienced bankruptcy attorney at Tadross Law today.

Bankruptcy and Your Current Job

If you are currently employed, you may be wondering how filing for bankruptcy will impact that employment. While it might be embarrassing to talk about your bankruptcy filing with your employer if it comes up, your employer — whether a public or private company — is not allowed to retaliate against you for filing for bankruptcy. This means that your employer cannot reduce your salary, demote you to a lower position, reduce your responsibilities, or otherwise act against you if they learn that you are filing for bankruptcy.

If your employer acts against you solely because you are filing for bankruptcy and not because you have done something else that could result in an employer taking action against you, you may have a case against your employer for discrimination.

Bankruptcy and a Future Job

While a current employer is not allowed to retaliate against you in any way for filing for bankruptcy, a future employer is not bound to the exact same rules. While a government agency is not allowed to refuse to hire you because you have filed for bankruptcy, the same cannot be said of a private company. If you are applying for a job with a private company and your employer runs a credit check or financial background check and sees that you have filed for bankruptcy, this could impact their decision to hire you. This is especially true if you are applying for a position that requires you to handle money.

Note that in order to run a credit check on you, a prospective employer will need your consent. You can refuse to consent, but that could result in the employer refusing to hire you. One of the best things that you can do in a situation like this is to have an honest conversation with your prospective employer about the bankruptcy before they discover it on your credit report. Most employers appreciate honesty, and it will give you a chance to explain the situation first.

Talk to an Attorney About Filing for Bankruptcy

If you are thinking about filing for bankruptcy but have questions about the process, how it will impact your employment and your credit score, and are not sure where to start, do not hesitate to consult with an experienced bankruptcy attorney. At the office of Tadross Law, our bankruptcy lawyer is here to serve you. Give our law firm a call directly today at (267) 296-9300 or send us a message telling us more about your situation and the type of support you need.

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